Listing Detail:
Listing Sought: ACE Market
Issue Price: RM 0.37

Dates:
Offer Period Open: 11 Jun 2018
Offer Period Close: 16,713,600
Tentative listing date: 18 Jul 2018

Number of shares:
Public Issue: 55,712,000
Offer for Sale: 18,521,000
Private Placement: 50,140,800

Stock Code: REVENUE

Official Announcement

INITIAL PUBLIC OFFERING IN CONJUNCTION WITH THE LISTING OF REVENUE GROUP BERHAD ("RGB") ON THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING:

(I) PUBLIC ISSUE OF 55,712,000 NEW ORDINARY SHARES IN RGB ("SHARES") IN THE FOLLOWING MANNER:

- 11,142,400 NEW SHARES AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC;

-11,142,400 NEW SHARES AVAILABLE FOR APPLICATION BY ELIGIBLE DIRECTORS AND EMPLOYEES WHO HAVE CONTRIBUTED TO THE SUCCESS OF THE GROUP; AND

- 33,427,200 NEW SHARES BY WAY OF PRIVATE PLACEMENT TO SELECTED INVESTORS AND

(II) OFFER FOR SALE OF 16,713,600 EXISTING SHARES BY WAY OF PRIVATE PLACEMENT TO SELECTED INVESTORS

AT AN ISSUE/OFFER PRICE OF RM0.37 PER SHARE, PAYABLE IN FULL UPON APPLICATION.

Company Overview

Established in 2003, Revenue Harvest Sdn Bhd (621984-T) and subsidiaries are a group of companies focused on delivering complete and customisable payment solution. The company provides various services and integrated payment platforms for many businesses.

Address & Contact:

Wisma Revenue, No. 12, Jalan Udang Harimau 2, Kepong Business Park, 51200 Kuala Lumpur

Tel : +603 9212 0505
Fax: +603 6242 8785

Internship / New Business / Careers: hr@revenue.com.my
Customer Care: customercare@revpay.com.my

URL: http://www.revenue.com.my/

Share Capital
Market Cap: RM82.453 mil
Shares Issue to sell: 72.425 mil shares
Enlarged Issued Shares: 222.848 mil shares

Business
Cashless payment solution

Fundamental
Market: Ace Market
Price: RM0.37 (eps 6mth: RM0.0198)
P/E & ROE: PE9.34, ROE8.7%
Cash & fixed deposit after IPO: RM0.077 per shares
NA after IPO: RM0.0017
Total debt to current asset after IPO: 0.86 (Debt: 26.776  mil, Non-Current Asset: 33.754 mil, Current asset: 31.007 mil)
Dividend policy: -

Financial
Trade Receivable: 61.7 days
Trade payable: 78.7 days

Past Financial Proformance (Revenue, EPS)
FPE 2017: RM15.397 (eps 6mth: 0.0198)
2017: RM26.526 mil (eps: 0.0313)
2016: RM25.726 mil (eps: 0.0203)
2015: RM14.386 mil (eps: 0.0095)

RGB Net Profit Margin
FPE 2017: 21.8%
2017: 26.1%
2016: 17.5%
2015: 14.7%

Competitor PAT Margin %
RGB 26.1%
GHL 7.4%
Interbase 10.1%
IPAY88 21%
MOLPAY 16.9%

After IPO Sharesholding
Nor Azzam bin Abdul Jalil: 0.4%
Ng Chee Siong: 22.2%
Ng Shih Chiow: 21.5%
Ng shih Fang: 21.5%
Ooi Guan Hoe: 0.4%
Ng Chee Keong: 0.4%

Director Remuneration (from gross profit 2017)
Nor Azzam bin Abdul Jalil: RM66k
Ng Chee Siong: RM730k
Ng Shih Chiow: RM730k
Ng shih Fang: RM730k
Ooi Guan Hoe: RM48k
Ng Chee Keong: RM48k
Total director remuneration from gross profit: 14.94%

Use of fund
Capital Expenditure: 39.3%
Enchancement of recPay and expansion of IT team: 19.6%
Repayment Debt: 12.1%
Business expansion: 7.3%
Listing expenses: 13.1%

Conclusion
Good thing is:
1. In Sunrise industry, but in very competitive environment.
2. Revenue increasing over 3 year.
3. Directors are major sharesholders.

The bad things:
1. Listing is on Ace market.
2. ROE% 8.7% is not attractive.
3. Director fee is 14.94% from gross profit, which is consider very expensive & it take big portion of company profit.
4. Use IPO fund 12.1% for debt repayment.
5. Debt to current asset is high 0.86.
6. No fix dividend policy.