KUALA LUMPUR: Cybersecurity services provider LGMS Bhd made its debut on the ACE Market of Bursa Malaysia Securities Bhd today, opening at 60 sen per share above its initial public offering (IPO) price of 50 sen, chalking up a 10 sen or 20% premium.
The stock closed at the day’s high of 84.5 sen. It was the second most actively traded stocks with a total of 246.99 million shares changing hands.
Raising RM45.7 million from the listing, the group said more than 80% of the total gross proceeds amounting to RM38.2 million will be utilised towards business expansion including the purchase of a new office with larger space, workforce expansion, capital expenditure and regional expansion into the Singapore, Vietnam and Cambodia markets. The remaining RM7.5 million has been set aside for working capital purposes and defrayment of listing expenses.
In a statement, its executive chairman Fong Choong Fook said cybersecurity has become vital in the current dynamic environment due to companies accelerating their digital transformation and businesses are depending on technology to function and thrive. With the booming digital economy, global cyber threat continues to evolve at a rapid pace, with headlines reporting rising number of breaches each year.
“Getting hacked isn’t just a direct threat to confidential data, it can put businesses in jeopardy with ruined customer relationships and significant legal liabilities. To recover from the impacts of a cyber-attack such as loss of trust or a data breach can be extremely expensive and damaging in the short- and long-term. When it comes to cyber security, prevention is always better than cure, and this is where LGMS plays an important role as the first line of defence against such malicious activities.”
LGMS, its subsidiaries and associate company are primarily involved in cyber risk prevention services, cyber risk management and compliance, and the provision of digital forensics and incident response services. The senior management holds various key internationally recognised cybersecurity related certifications, which are highly regarded in the cybersecurity market.
The bulk of its revenue is derived from cyber risk prevention services encompassing vulnerability assessment and penetration testing which identify vulnerabilities and cyber threats to accordingly prescribe the relevant recommendations or actions to be taken to fix loopholes and address security weaknesses.
