EMCC to raise RM64.2mil via ACE Market IPO

KUALA LUMPUR: Evergreen Max Cash Capital Bhd (EMCC), which launched its prospectus today, aims to raise RM64.2 million through its initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia Securities Bhd.

In a statement, executive director and group managing director Datuk Low Kok Chuan said the proceeds from the IPO will largely finance the expansion of EMCC’s pawnbroking business.

The group is also involved in the business of retail and trading of gold and luxury products.

“To capitalise on the future demand for pawn loans, we seek to utilise RM30 million or 46.7 per cent of the IPO proceeds towards funding the additional cash capital of our pawnbroking business and RM20 million (31.1 per cent) for opening up to five new “Pajaking” pawnshops in Kuala Lumpur, Selangor and Pahang.

“The remaining IPO proceeds of RM14.2 million (22.2 per cent) will be used for repayment of bank borrowings, our group’s working capital purposes and to defray listing expenses,” he said.

Low said the expansion plan would in turn enable EMCC to grow its pawnbroking business scale and capture a larger market share and brand visibility.

EMCC’s IPO comprises a public issue of 267.6 million new ordinary shares in the group, whereby 55.7 million shares will be made available for application by the public via balloting.

“Based on the IPO price of 24 sen per share and its enlarged issued shares of 1.11 billion shares, EMCC’s market capitalisation upon listing is approximately RM267.6 million,” he said.

As for dividends, Low said EMCC intended to distribute a dividend of 20 per cent of the profit after tax attributable to owners of the company.

Following the prospectus launch, applications for the IPO are now open and will close on Sept 12, 2023, at 5 pm.

The group is scheduled to be listed on the ACE Market of Bursa Securities on Sept 26, 2023. – BK