AUTOCOUNT Dotcom Bhd, a renowned developer and distributor of financial management software, has made a triumphant debut on the ACE Market of Bursa Malaysia today.
Its stock ended its maiden trading day with a 42 sen or 127.27% premium to close at 75 sen from its initial public offering (IPO) price of 33 sen with a hefty 277.31 million shares traded which gave the group a market capitalisation of RM413 mil. The stock was traded between a high of RM1.16 and a low of 69 sen.
Capitalising on its impressive ACE Market listing, Autocount is poised to expand into the ASEAN markets. The group’s growth strategy will involve entering the Philippines, Indonesia, Thailand and Vietnam, building upon its successful penetration into the Singapore market since 2017.
Autocount’s IPO itself proved to be a resounding success, garnering over 167 times over-subscription from the public and has successfully raised RM30.88 mil.
Following the listing ceremony, Autocount’s executive chairman Choo Chin Peng shared his excitement for the group’s upcoming growth phase driven by expansion plans into key ASEAN markets. Choo cited the group’s success in Singapore as a blueprint for their entry into new markets.
To Autocount’s managing director Choo Yan Tiee, today’s listing exercise signifies the beginning of the group’s next growth phase. “As we embark on this exciting journey of regional expansion, we remain committed to delivering sustainable, long-term value for our shareholders,” he noted.
The localisation efforts and market penetration strategies that Autocount implemented in Singapore have yielded remarkable results, leading to significant revenue growth. In merely five years, the Singapore market has swelled to represent 18.7% of the group’s total revenue in FY2022.
To that end, the group plans to allocate 56% or RM17.4 mi of its IPO proceeds toward bolstering its presence across the vibrant ASEAN region. By strategically setting up local sales offices, Autocount aims to enhance its software’s visibility among regional clients while delivering unparalleled customer experience.
Beyond market expansion, Autocount also seeks to capitalise on the digitalisation trend among small and medium enterprises (SMEs) which has spurred a surge in demand for cloud enterprise software.
The group plans to upgrade its cloud-native software to accommodate this demand as the shift towards software-as-a-service (SaaS) models will help generate recurring revenue.
As such, 17% of the IPO proceeds or an equivalent of RM5.2 mil, will be dedicated to strengthening its research, development, and technology capabilities. This substantial investment enables Autocount to enhance and replicate its product offerings across other industry verticals and expand and develop new technology applications for enterprises.
Autocount specialises in developing and distributing financial management software, including accounting, point-of-sale (POS), and payroll solutions. The company has sold approximately 70,000 software licenses to around 210,000 businesses and companies, primarily in Malaysia and Singapore.
For its 1Q ended March 31, 2023, Autocount posted a net profit of RM3.66 mil or earnings per share of 0.8 sen on the back of a revenue of RM10.42 mil.
Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for Autocount’s IPO exercise. – May 9, 2023
