PETALING JAYA: Human capital management (HCM) solutions and technology provider Ramssol Group Bhd made a solid debut on the ACE Market of Bursa Malaysia Securities today, closing at 51 sen for a 6 sen or 13.3% premium over its offer price of 45 sen, with 150.19 million shares changing hands.
Ramssol opened at 70 sen, representing a premium of 25 sen or 55.6%. The opening volume was 25.36 million shares.
Group managing director and CEO Cllement Tan Chee Seng said the group has an outstanding order book of RM19.4 million, of which RM16.2 milion is expected to be billed in financial year 2021 (FY21).
He said there is no assurance that the prolonged Covid-19 pandemic will not affect the group’s financial performance. However, he emphasised that its billing schedule and financial performance in FY20 have not been affected by the pandemic in all of its countries of operations.
“As at LPD (latest practicable date of May 24), we have RM3.4 million cash and bank balances and unutilised bank borrowings of RM750,000. On dividend policy, our ability to pay dividend to shareholders is subjected to various factors. The exact amount of dividend distribution to shareholders depends on the decision of the board,” Tan told reporters at a virtual press conference in conjunction with its listing ceremony today.
He said the group has laid out a robust expansion strategy and this includes expanding its presence in Southeast Asia by tapping into the Philippine market.
“We have invested RM2.5 million in the Philippine market. The timeline of expansion is 24 months according to our utilisation of proceeds. We have identified a co-working place and plan to set up the office in Manila and commence our operation in 12 months upon listing.
“We will focus on building our business presence there and to understand the market dynamics in the Philippines. The demand for digitalisation of human resources will grow significantly in the next couple of years. Keeping this in mind, we will constantly capture the growth opportunities by continuously innovate our HCM tech solutions products offering and are committed to helping organisations invest in the right tools and management strategies,” Tan said.
He said the group’s major clients are Megatech Education Sdn Bhd, Thailand’s Exim Bank, Capital Land Group of Businesses, Bank of Ayutthaya in Thailand, PT Sigma Solusi Integrasi in Indonesia.
“We are not dependent on any of our major clients, we may derive substantial revenue from different clients based on their investment budget,“ he said.
On Ramssol’s market shares in Malaysia, Tan said 1.33% is in human capital solutions.
“Last year Ramssol captured a 0.004% market share in the information technology staff augmentation industry, and 0.5% of the employment engagement platform or collaborative platform market in countries involved collectively. There is a lot of room for improvement for us and there is a huge market out there that we have not penetrated,“ he said.
He added that while the group continues to incur costs such as staff salaries and rental, once there is easing of lockdowns in the respective countries, its project delivery schedules can be accelerated.
Out of the RM25.1 million initial public offering proceeds, RM2.5 million will be allocated for business expansion into the Philippines and RM6.3 million for the expansion of Feet’s, as well as that of third-party collaboration platform, Lark, in Southeast Asia. The group is allocating RM4.1 million for research and development, RM7.6 million for working capital and the remaining RM4.6 million for listing expenses.