The cybersecurity services provider’s initial public offering (IPO) of 137 million shares is open today until May 26. The listing is slated for June 8.
Based on the offer price of 50 sen per share, it is estimated that LGMS will have a market capitalisation of RM228 million upon listing. The exercise is expected to raise up to RM45.7 million.
The company said RM38.2 million of the proceeds will be utilised for business expansion, which includes the purchase of a new office with larger work space, enlarging the workforce, capital expenditure and strategic regional expansion into fast-growing markets such as Singapore, Vietnam and Cambodia.
The remaining RM7.5 million will be set aside for working capital and to defray listing expenses.
A total of 22.8 million shares will be made available to the Malaysian public via balloting. Another 12.5 million shares have been set aside for eligible directors, employees and persons who have contributed to its success.
A total of 44.7 million shares will be offered to selected individuals through private placement and the remaining 57 million have been allocated to Bumiputera investors approved by the international trade and industry ministry.
In emphasising the need for cybersecurity services, LGMS executive chairman Fong Choong Fook pointed out that organised cyber criminals now operate on a scale and sophistication beyond the capabilities of lone hackers of the past.
“With cyber criminals casting their dark shadow in every corner, the market needs what we have to offer,” he said in a statement.
Fong said the cybersecurity market would be spurred by digital transformation, the proliferation of digital touch-points and applications, the need for digital privacy, increasing broadband penetration as well as supportive government policies.
LGMS is primarily involved in cyber risk prevention, management and compliance as well as providing digital forensics and incident response services.
For the financial year ended Dec 31, 2021, it posted a profit after tax (PAT) of RM10.3 million with an operating profit margin and PAT margin of 50% and 36% respectively.
Revenue for the financial year stood at RM28.3 million with 79% of it coming from Malaysia and the remaining 21% attributed to its overseas operations.
LGMS said the bulk of its revenue was derived from cyber risk prevention services encompassing vulnerability assessment and penetration testing.
UOB Kay Hian Securities (M) Sdn Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the exercise.