In a statement, the investment bank said upon completion, the group’s aggregated equity holding in Merchantrade will increase to 19.94% from 4.74% previously, positioning it as the second-largest shareholder after Merchantrade’s managing director and founder, Ramasamy K Veeran.

Group managing director Chay Wai Leong said the exercise reflects Kenanga IB’s commitment to strengthening its relationship with the company.

“It underscores its dedication to fostering partnerships within the financial ecosystem, to explore synergies and expand innovative offerings,” he said.

Chay said as two homegrown brands deeply rooted in Malaysia’s financial landscape, Kenanga IB and Merchantrade share a common vision and ambition to drive digital innovations and reshape the financial industry.

“Our increased equity interest in Merchantrade underscores our commitment to leveraging emerging technologies to revolutionise the way financial services are delivered.

“Together, we are poised to accelerate our collective efforts in delivering innovative solutions and enhancing the digital experience for our customers,” he said.

Founded in 1996, Merchantrade is known for its innovative solutions and is the country’s largest money services business operator and a leading player in the digital payment space.

With a vast customer base that exceeded five million since its inception, the company serves its clientele through digital platforms, app-based channels, and an extensive nationwide physical network.