AGMO TO SET UP SINGAPORE TEAMS WITHIN 18 MONTHS OF LISTING

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Aug 17 (Bernama) -- Homegrown digital solutions and application development specialist Agmo Holdings Bhd (Agmo) has plans to expand in Singapore, targetting to set-up teams within 18 months of its listing on Bursa Malaysia’s ACE Market tomorrow.

Agmo aims to raise RM22.10 million from its initial public offering (IPO).

Its chief executive officer Tan Aik Keong said with a dedicated team in the city state, Agmo will be able to focus on growing the business and enhance its customer relationships there. 

“We will expand our regional footprint by venturing into Singapore where the mobile and web application development and digital solutions industries are expected to continue on a strong growth trajectory.

“The establishment of our business presence there is expected to increase the group’s profile in the region,” he told Bernama. 

He said Singapore is a key global financial centre and also a regional base for many technology-related multinational firms. This will attract regional tech firms to set up shop there, leading to opportunities for the company to offer its services.

Citing an Independent Market Research report, he said the sales revenue of the mobile and web application development industry in Singapore increased from US$18.08 million in 2018 to US$37.01 million in 2021 at a compounded annual growth rate of 26.97 per cent.

He said companies and organisations have currently started to embark on digitalisation via various means to remain competitive and relevant within their respective industries.

“They recognise the growing need for business digital transformations including the adoption of mobile and web apps into their business operations.

“This as an opportunity for Agmo to capitalise on,” he said, adding that the company can assist businesses to smoothly embark on their digitalisation journey with the experience and expertise available which have been honed over the past ten years.

At an issue price of 26 sen per share and an enlarged share capital of 85 million shares, the group will have a market capitalisation of RM84.5 million on listing.

Agmo has allocated RM9.47 million from the RM22.10 million IPO proceeds for investments in research and development, sales, marketing, and business development as well as technical support and maintenance services. 

It has assigned RM6.22 million for working capital and related capital expenditure for mobile and web application development expansion and digital platform-based services as well as to set up a new office.

About RM2.54 million of the IPO proceeds will go towards setting up a training and development centre, Agmo Academy, while RM690,000 will be allocated for its Singapore expansion. The remaining RM3.18 million is for listing expenses. 

-- BERNAMA