JM Education will be third firm to list on LEAP

PETALING JAYA: JM Education Group Bhd, which will be the third entrant into the Bursa Malaysia’s Leading Entrepreneur Accelerator Platform (LEAP) and the first for 2018, plans to issue up to 6.8 million shares, representing 10% of the company’s share capital, at 45 sen apiece.
The education counselling, skills training and student placement services provider, which filed its information memorandum (IM) with the stock exchange today, said it is looking to make its bourse debut in early February.
The company is to raise RM3.06 million from the exercise, of which RM910,000 or 29.7% will be used to foot listing expenses, while RM890,000 or 29.1% will be used to repay bank borrowings.
JM Education also intends to deploy RM740,000 or 24.2% for marketing expenses and expansion, whereas RM520,000 or equivalent to 17% will be used for working capital.
Upon listing, the group’s market capitalisation is expected to stand at RM30.51 million.
The company’s substantial shareholder is its managing director, Teh Cheong Hua, who holds 92.5% equity interest while the remaining 7.5% stake is held by his wife, Su Cheia Yee.
The group’s unaudited accounts show that it recorded a revenue of RM5.45 million for the seven-month period ended July 31, 2017.
It has three wholly owned subsidiaries under its wing, namely Education UK Network, JM Education (Sabah) and Miraj Academy. Its 50%-owned associate company Konsortium Kemahiran is dormant.
Cloudaron Group Bhd and Red Ideas Holdings Bhd are the two current listees on the LEAP market.