RETAIL management ecosystem solution provider Panda ECO System Group Bhd is poised to enter the ACE market come Monday (Nov 27) with the key objective of enhancing the group’s visibility and profiling while fostering trust and confidence among potential and existing customers.
“In addition to the visibility aspect, the listing will enable us to raise IPO (initial public offering) proceeds amounting to approximately RM17.5 mil,” quipped Panda ECO System CEO Loo Chee Wee.
These funds are earmarked for pivotal expansion plans aimed at fortifying the position of the company in the industry.
A significant portion will be allocated to the research and development (R&D) of new solutions, business expansion and bolstering the team by hiring talents, hence ensuring the expertise needed to drive innovation and provide support to customers.
According to Loo, the group’s expansion plans extend beyond borders, and in particular, are targeting growth in the Indonesia and the Philippines markets. As it is, navigating the retail industry presents considerable challenges due to the intricacies involved.
The multi-faceted nature of the retail landscape demands a solution capable of seamlessly integrating and streamlining operations across the entire spectrum.
Loo said their solutions are not mere products but a culmination of his first-hand experience in the retail sector coupled with the IT expertise of the co-founder. The solutions of Panda ECO System Group are currently adopted by over 1,400 retail stores across Peninsular and East Malaysia, Batam and Brunei.
“Despite our in-house solutions being competitively priced in comparison to global counterparts, we consistently achieve net profit margins surpassing 30% with over 40% of our revenue being recurring,” revealed Loo.
Retailing technology
When prompted about the future, he said the retail industry – including the grocery sector – is on an irrevocable path of digitalisation. Loo added that the recent years have witnessed a remarkable transformation driven by evolving consumer expectations, technological advancements and heightened competition – and that this trend is set to continue.
To remain not just relevant but ahead of the curve, retailers must embrace technology and implement solutions to enhance their operations.
Moving forward, processes need to be more robust to meet the growing demands of consumers seeking more convenient payment options and faster, more efficient services. Furthermore, digitalising processes with suppliers will be crucial for greater efficiency, fostering streamlined interactions.
In this rapidly evolving landscape, customer relationship management (CRM) programmes play an increasingly important role in retaining loyalty. Interacting with customers through personalised and efficient CRM programmes is essential for building lasting relationships.
“We have meticulously timed this IPO to catalyse our growth trajectory. Among our key plans is the continuous development of innovative solutions, including the development of cloud-based modules for our retail management ecosystem,” shared Loo.
Additionally, the organisation is set to unveil a new solution tailored for the invoice financing process while incorporating e-invoice financing to streamline clients’ financial management.
According to Loo, the group will also be introducing a comprehensive business analytics dashboard and retail income management tools, thus providing clients with enhanced insights for informed decision-making.
To support these plans, additional software development engineers and customer technical support personnel will be actively recruited. This strategic hiring initiative is integral to fortifying their team and ensuring that they have the necessary expertise to drive innovation and the seamless implementation of their solutions.
“In terms of physical expansion, we are investing in the construction of our new HQ in Melaka. Furthermore, we are establishing new offices in Kuala Lumpur and Penang,” noted Loo, adding that this regional expansion is designed to provide more efficient customer service and support services to customers in the other states in Malaysia.
Regionally, Panda ECO System Group is already serving clients in Batam (Indonesia) and Brunei. This year the company has successfully on-boarded a new Indonesian client which is a retail chain store.
To substantiate the expansion strategy of the company, preliminary internal research is conducted, drawing insights from market observations, feedback from other solution providers, and collaboration with a trusted business associate.
All in all, Panda ECO System Group’s IPO entails a public issue of 109. 28 million new shares and an offer for sale of 61.81 million existing shares at an IPO price of 16 sen/share payable in full upon application. – Nov 24, 2023
