RICHTECH DIGITAL BERHAD SUCCESSFULLY LAUNCHES PROSPECTUS FOR ACE MARKET IPO

Funds Raised to Drive Growth in Malaysia’s Electronic Reload and Bill Payment Services Sector

KUALA LUMPUR, 21 JANUARY 2025 – 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 successful launch of its prospectus for its Initial Public Offering (“IPO”) in conjunction with its listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). This milestone underscores RichTech’s dedication to advancing its position in the dynamic electronic reload and bill payment services industry.

This IPO is set to raise RM13.67 million through the issuance of 54.66 million new ordinary shares at the IPO price of RM0.25. The funds raised will be strategically allocated to drive digital innovation and market expansion:

·       RM4.50 million for  marketing, promotional and collaboration activities to expand the user base of end-users for its SRS App and SRS Portal.

·       RM3.00 million for the acquisition of a new office, consolidating RichTech’s headquarters and branch office under one roof for corporate profiling and ease of administration.

·       RM3.00 million for working capital to support the growing digital transaction volume and platform scaling.

·       RM3.17 million for estimated listing expenses.

Mr. Lee Teik Keong, Managing Director of RichTech, remarked, "As Malaysia accelerates towards a fully digital economy, RichTech is positioned to participate in this transformation. Our IPO represents more than just a capital raising exercise – it reflects our dedication to enhancing the convenience and accessibility of electronic reload and bill payment services for a wide range of users. Through our enhanced SRS platform, we are enabling businesses and consumers to adopt seamless digital solutions for electronic reload and bill payments, aligned with both national and global digitalisation trends."

En. Ahmad Fazlee bin Aziz, Co-Head / Director, Corporate finance of KAF, said, “RichTech’s IPO reflects the Company’s strong foundation and immense growth potential in Malaysia’s evolving electronic reload and bill payment services industry. We are proud to support RichTech in achieving its vision of becoming one of the leading force in this sector, leveraging its innovative platform and robust market presence.”

According to the Independent Market Research (“IMR”) Report, the electronic reload and bill payment services industry in Malaysia has experienced significant growth, with commissions and/or incentives generated from these services growing at a compound annual growth rate (“CAGR”) of 12.9% between 2019 and 2023. The sector is projected to maintain strong momentum with an 11.5% CAGR from 2024 to 2026. RichTech, with its well-established SRS platform and extensive user network, is well-positioned to capitalise on these opportunities. Notably, RichTech's proven track record is evident in its impressive gross profit margin growth from 97.09% in FYE 2021 to 98.17% in FYE 2023, demonstrating its ability to scale efficiently while maintaining service quality.

Applications for the IPO are open from 21 January 2025 and will close on 31 January 2025. The listing on the ACE Market of Bursa Securities positions RichTech to play a pivotal role in shaping Malaysia's digital economy landscape and supporting the nation's digital economy aspirations.

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