LICENSED pawnbroker Pappajack Bhd has launched its prospectus as the first licensed pawnbroking company to be listed on the ACE Market of Bursa Malaysia.
The initial public offering (IPO) involves a public issue of 167.00 million IPO shares at the issue price of RM0.30 per share and is made available for application in the following manner:
- 33.40 million shares will be available for application by the Malaysian public;
- 6.68 million shares will be available for application by eligible persons;
- 83.50 million shares will be available for private placement to identified Bumiputera investors approved by the International Trade and Industry Ministry (MITI); and
- 43.42 million shares will be available for private placement to selected investors.
The IPO is expected to raise RM50.10 mil in proceeds, of which RM19.22 mil will be allocated for the expansion of Pappajack’s new pawnbroking outlets within Peninsular Malaysia.
Another RM27.08 mil of the proceeds will be allocated for cash capital to existing pawnbroking outlets while the remaining RM3.80 mil will be utilised to defray listing expenses.
“We plan to continue expanding our network of pawnbroking outlets and at the same time penetrate new geographical markets within Peninsular Malaysia,” said Pappajack Bhd managing director and CEO Lim Boon Hua.
“By expanding our network of pawnbroking outlets, we would be able to increase our market presence and serve a wider customer base. The expansion will support and contribute positively to our financial performance in the future.”
Lim further noted that pawnbroking services play a crucial role in the financial ecosystem by providing short-term micro-loans to the unserved or underserved who need immediate cash quickly which is easily accessible.
The main stream financial institutions’ emphasis on credit lending have made pawnbroking services – which is principally based on asset lending – more important among people who otherwise may not be able to get cash funding, he added.
“People tend to view pawnbroking as an unexciting business without understanding the role pawnbrokers play in helping people tide over their financial circumstances.
At Pappajack, our services are offered as a modern pawnbroking service with quick and easy access to financing to customers in a friendly and responsible environment.”
Pappajack, whose pawnbroking activities come under the Housing and Local Government Ministry and is governed under the Pawnbrokers Act 1972, provides short-term micro-loan finance services to customers who pledge gold and luxury watches.
The Kuala Lumpur-based company which currently has a network of 25 pawnbroking outlets since its launch in 2014 is opening five more new pawnbroking outlets and is planning to serve a wider market through its business network expansion. – March 11, 2022
