KUALA LUMPUR - Panda Eco System Berhad made a striking entrance onto the ACE Market of Bursa Malaysia today, with its shares skyrocketing 81% from an IPO price of RM0.16 to open at RM0.29. The company witnessed a substantial trading volume, indicating strong investor interest as over 61 million shares changed hands.
The impressive debut comes on the heels of an overwhelming response from the Malaysian public, who oversubscribed to the initial public offering by 153.5 times. This enthusiasm reflects confidence in Panda Eco System's business model and growth prospects.
On the same day, CEO Lo Chee Wee outlined the company's strategic plans for the RM17.5 million raised through the IPO. The funds are earmarked for several key initiatives, including significant investment in research and development (R&D) to advance Panda's Retail Management Eco-system. Additionally, the company looks to expand its market presence into new territories such as Batam and Brunei.
Panda Eco System has established a robust financial foundation, with revenue growth from RM16.4 million to RM21 million between FY20 and FY22 and maintaining a core post-tax adjusted profit after tax and minority interests (PATAMI) around RM7 million. This performance is attributed to consistent software license revenues and a resilient business model.
The company's future plans are not limited to R&D but also include enhancing its operational base with an allocation of 17.2% of IPO proceeds for expanding headquarters, 16.2% for fortifying working capital, and 15.6% for covering listing fees. Moreover, 15.5% will support R&D projects, while 15.1% will go towards creating service hubs and enlarging the workforce. A strategic 10.8% is reserved for penetrating ASEAN markets.
M & A Securities Sdn Bhd, serving as Principal Adviser and Sole Underwriter for this highly anticipated IPO, projects that Panda's core PATAMI will rise to RM7.3-7.9 million (USD1 = MYR4.6825) in FY23-24f due to its focus on cloud-based retail management systems and expansion strategies across regional markets.
Adding to this momentum is the plan for a new office in Penang, which aligns with government digitalization policies aimed at enhancing efficiency in retail operations—a move that further solidifies Panda's two-decade track record in the industry.
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