KUALA LUMPUR (June 28): Digital media and advertising group Catcha Digital Bhd said its wholly-owned subsidiary, iMedia Asia Sdn Bhd, saw its pre-tax profit grow 28% year-on-year to RM3.89 million in the first quarter ended March 31, 2023 (1QFY2023), with its portfolio of digital marketing platforms and services reaching over 13.1 million Malaysians as of end-May.

iMedia posted a record pre-tax profit of RM10.28 million in FY2022, up 69% from the previous year.

Catcha Digital acquired iMedia in March this year, as part of its regularisation plan to lift its Guidance Note 2 (GN2) status.

"We are at the beginning of Catcha Digital’s expansion journey and we are determined to accelerate our growth trajectory and actively pursue highly accretive investment opportunities that align with our strategic objectives. Our aim is to attract the best digital and software companies to collaborate with us, consolidating our position as the industry leader in Southeast Asia thus creating sustainable value for all stakeholders,” said Catcha Digital group chief executive officer Eric Tan in a statement on Wednesday (June 28).

As a final step in its regularisation plan, Catcha Digital launched an abridged prospectus in relation to a rights issue to raise up to RM41.04 million in capital, which will be used to partly settle the first and second hurdle payment for its acquisition of iMedia and for working capital.

Catcha Digital's renounceable rights issue entails the issuance of up to 174.64 million new shares in the group on the basis of one rights share for every one existing Catcha Digital share held by entitled shareholders at an issue price of 23.5 sen each.

Out of the RM41.04 million, RM18 million has been committed by its major shareholder Catcha Group Pte Ltd.

“The rights issue presents a compelling opportunity for our shareholders to actively participate in the growth of Catcha Digital. With an attractively priced offering, we believe this is an opportune moment to capitalise on the company's potential as we ride the fast-growing wave of digitalisation," said Tan.

At 3.42pm on Wednesday, Catch Digital’s share price was up 1.5 sen or 6.52% at 24.5 sen. Its market capitalisation was RM31.61 million.

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