KUALA LUMPUR (Sept 14): ACE Market-bound Mercury Securities Bhd reported a net profit of RM3.73 million in the third quarter ended July 31, 2023 (3QFY2023), driven by margin income from its stockbroking and corporate finance segment.

Quarterly revenue stood at RM7.26 million, the stockbroking and corporate finance advisory firm said in a filing to Bursa Malaysia.

For the nine-month period ended July, cumulative net profit stood at RM8.81 million. The profit included gains from proprietary trading, other income – comprising mainly interest income from placement of funds on repo basis with financial institutions – and realised gains on foreign exchange, Mercury Securities said.

Revenue for 9MFY2023 stood at RM18.7 million, it added.

On prospects, the group expects to expand its stockbroking services comprising execution of trades, provision of margin financing facility services, underwriting and placement services, nominee and custodian and related services.

“As part of our digital roadmap strategy, we will continue to enhance our online trading platforms with added new features to improve our client trading experience. This will facilitate our client acquisition efforts and increase our market share in terms of stock execution value and volume,” Mercury Securities said.

Mercury Securities is scheduled to be listed on the ACE Market of Bursa Securities on Sept 19.

Mercury Securities aims to raise RM39.27 million via the issuance of 157.09 million shares, at an issue price of 25 sen per share from its initial public offering exercise.

The stockbroking firm said RM26.86 million of the proceeds will be allocated to develop Mercury Securities’ margin financing facility services, while RM2.88 million will be used to enhance the group's digitalisation programme and marketing activities for its stockbroking business and operations.

The group will also allocate RM4.63 million for working capital, while the remaining RM4.90 million will be used to cover estimated listing expenses.