RICHTECH DIGITAL BERHAD SIGNS UNDERWRITING AGREEMENT WITH KAF INVESTMENT BANK BERHAD

Public Offering of 54.66 Million Issue Shares for Listing on the ACE Market of Bursa Malaysia

KUALA LUMPUR, 26 NOVEMBER 2024 – RichTech Digital Berhad (“RichTech” or the “Company”), a company involves in the distribution of electronic reloads and provision of bill payment services in Malaysia, is pleased to announce the signing of underwriting agreement with KAF Investment Bank Berhad (“KAF”) for its upcoming public offering in conjunction with the listing on the ACE Market of Bursa Malaysia Securities Berhad (“ACE Market”). This pivotal milestone underscores RichTech’s determination to continued innovation and growth in the electronic reloads and bill payment sector of Malaysia.

Established in 2010, RichTech is a leading provider of electronic reloads and bill payment services in Malaysia, powered by its proprietary SRS platform. The platform enables electronic reloads for mobile airtime and data, prepaid digital TV, gaming credits, application credit, and e-wallet credit, as well as bill payments for postpaid mobile network, utilities, maintenance services of national sewerage systems, internet, postpaid digital TV, quit rent, assessment payment, and education loans. It serves over 4 million users nationwide.

This Initial Public Offering (“IPO”) exercise will involve a public issue of 54.66 million new ordinary shares (“Issue Shares”) and 25.31 million existing shares to be offered under Offer for Sale (“Offer Shares”), collectively representing 39.50% of the Company’s enlarged issued share capital. The allocation of the Issue Shares and Offer Shares are as follows:

The allocation of Issue Shares will be offered in the following manner: -

1.     Shares for the Malaysian Public via Balloting:

·         10.12 million Issue Shares, equally distributed between Bumiputera and non-Bumiputera investors (5% of the enlarged issued share capital).

2.     Allocation to Eligible Directors and Employees:

·         1.55 million Issue Shares (0.77% of the enlarged issued share capital).

3.     Private Placement to Selected Investors:

·         42.99 million Issue Shares (21.23% of the enlarged issued share capital).

4.     Offer for Sale via Private Placement to Selected Investors:

·         25.31 million Offer Shars (12.50% of the enlarged issued share capital).

KAF, in its role as Principal Adviser, Sponsor, Underwriter, and Placement Agent, will underwrite 11.67 million Issue Shares allocated for the Malaysian public and eligible individuals.

Mr. Lee Teik Keong, Managing Director of RichTech, said, “The partnership with KAF enables us to take our services to greater heights while strengthening our ability to serve the growing market. With the funds raised, we will focus on expanding our SRS platform, enhancing our technological infrastructure, and introducing innovative services to cater to evolving consumer needs.”

Rohaizad Ismail, Chief Executive Officer of KAF, remarked, “It is our honour to be part of RichTech’s remarkable journey to the ACE Market. RichTech’s focus on service excellence positions it as a key player in Malaysia’s electronic reloads and bill payment sector. This IPO will equip the company with the resources it needs to scale its impact and deliver exceptional value to its stakeholders.”

RichTech will utilise IPO proceeds to fuel growth in the distribution of electronic reloads and provision of bill payment services, including marketing efforts to expand its SRS corporate and end-user base, as well as utilising the proceeds for general working capital purposes. A portion will fund the acquisition of a new office to consolidate its headquarters and branch under one roof, enhancing corporate profiling and operational efficiency. The remainder will cover listing expenses pertaining to its ACE Market debut and support strategic growth initiatives. The listing of RichTech on Bursa Securities will provide a solid platform for the company to accelerate its growth and advance its vision to become a leading force in Malaysia’s electronic reloads and bill payment industry.

KAF Investment Bank Berhad is the Principal Adviser, Sponsor, Underwriter and Placement Agent.