It is offering 85 million shares at 26 sen apiece at the Aug 18 listing.

Out of the 85 million shares, 16.25 million will be made available to the public while 62.25 million shares will be available for private placement to selected investors and 6.5 million shares will be reserved for eligible directors, key senior management personnel, employees and business associates of the group.

Of the RM22.1 million in proceeds, RM9.47 million will be set aside for research and development in the sales, marketing and business development teams, as well as a technical support and maintenance service division.

Another RM6.22 million has been earmarked as working capital and related capital expenditure for the purpose of expanding the company’s mobile and web application development as well as digital platform-based services and the setting-up of a new office.

Also, RM3.18 million will be set aside for listing expenses, and about RM2.54 million will go towards establishing an Agmo Academy training and development centre.

The centre will be the platform for recruiting new industry talents for the company while providing its own training syllabuses to generate additional revenue.

Lastly, the company will invest RM690,000 in its plans to expand to Singapore.

“We are ready for the next stage in growth as we continue expanding our digital solutions offerings,” Agmo CEO Tan Aik Keong said.

Tan expects the demand for digitalisation in Malaysia to continue to rise due to the growing need for business digital transformation and this includes the adoption of mobile and web applications.

He added that this is driven by digitalised consumer behaviour and attachment to mobile devices in daily activities, digitalisation of businesses, and the implementation of digital transformation initiatives by Singapore.

The principal advisor, sponsor, underwriter and placement agent of the IPO is Kenanga Investment Bank Bhd.