(From left) Agmo Holdings Bhd independent non-executive directors Dr Lau Cher Han, Datin Yap Shin Siang and Fairuz Azrul, non-independent non-executive chairman Datuk Andy Low Hann Yong, non-independent executive director and chief executive officer Tan Aik Keong, non-independent executive director and chief operating officer Low Kang Wen, chief technology officer Tham Chin Seng and head of finance Cynthia Wong Yoke Wah at Agmo's listing ceremony on the ACE Market of Bursa Malaysia on Thursday (Aug 18).

KUALA LUMPUR (Aug 18): Agmo Holdings Bhd ended its first day of trading on Bursa Malaysia's ACE Market on Thursday at 78.5 sen, for an impressive premium of 52.5 sen or 202% above its initial public offering (IPO) price of 26 sen.

Shares of the home-grown digital solution and application development specialist opened at 78 sen and touched an intraday high of 82 sen before paring some of the gains.

Based on its closing price, Agmo has a market capitalisation of RM255.125 million. It was the day's third most active counter, with 148.98 million shares changing hands.

In a statement, Agmo chief executive officer Tan Aik Keong said, the group aims to expand its operations in Malaysia and enlarge its footprint in Southeast Asia by expanding the business into Singapore.

“With demand for digital solutions, including mobile and web applications, among businesses of all sizes growing at an accelerated pace, a lot of new opportunities have emerged for our Group. We have thus laid out several initiatives to capitalise on this optimistic scenario and grow our customer base in the local and regional markets,” he added.

“With the proceeds raised from the IPO, we will expedite our growth initiatives and continue our efforts to put the Group in a stronger position to pursue future opportunities, even as we continue to innovate our product offerings,” Tan said.

Of the RM22.1 million in proceeds raised from the IPO, Agmo has allocated RM9.47 million for investments in dedicated research & development, and sales, marketing and business development teams.

Another RM6.22 million will be used for working capital and related capital expenditure to cater for the expansion of its mobile and web application development and digital platform-based services as well as the setting up of a new office.

About RM2.54 million of the proceeds will be utilised for establishing a training and development centre (to be known as Agmo Academy), while the remaining RM690,000 has been earmarked for regional expansion into Singapore.