MOL Global Inc, a Malaysia-grown e-commerce company, looks to expand its business presence to 100 countries, and its expansion plans are track despite its lacklustre listing on the NASDAQ last week.
Despite downsizing its initial public offer the company faltered with its float and managed to raise only $169 million by selling 13.5 million shares at $12.50, the low end of the $12.50 to $14.50 range, far below the below the $300 million it was gunning to raise.
Its shares plummeted 35% on October 9 (Thursday), the opening day of the trade, making it the worst opening day performance for a listing in a decade.
The newly listed stock closed its first day’s trading at $8.14, with a market capitalisation of $537 million. On Friday, MOLG ended the week at $8.21, a slight improvement in share price by 0.85%.
NASDAQ noted that MOLG’s listing took place on a day that saw the NYSE Financial Sector Index falling about 1.9% and the S&P Financial 100 Index dropping about 1.7%.
Citi, Deutsche Bank and UBS Investment Bank acted as joint bookrunners for the listing.
MOL Global (MOLG ) also announced that the a Malaysian royalty, Sultan Ibrahim of the Johor state, has acquired a 15% stake in its subsidiary MOL AccessPortal Sdn Bhd for a cash consideration of $120 million.
In a statement, MOLG said the sultan has plans to increase involvement in the technology sector and create more job opportunities in the Malaysian state.
MOLG currently has footprint in 13 countries, including Malaysia, Thailand, Turkey, the Philippines, Singapore, Indonesia, India, the United States, Australia, Brazil, Taiwan, Vietnam and New Zealand.
The e-payment solutions provider has handled over 60 million transactions each year, with an annual payment volume of more than $500 million.
The primary shareholder of MOLG is Vincent Tan, a Malaysian tycoon, who owns 73% of MOLG.
Tan was quoted saying that the company was expected to be valued at $3 billion by 2019.
MOLG’s IPO offered 13,500,000 American depositary shares (ADS), consisting of 7.48 million ADSs offered by the company and 6.01 million ADSs offered by certain selling shareholders of the company for US$12.50 per share.
MOLG’s listing in the United States closely followed China e-commerce giant Alibaba’s IPO on the New York Stock Exchange two weeks prior.
MOLG, or Money Online, is the first Malaysian company to be listed on Nasdaq in the past decade.
MOLG, led by chief executive officer Ganesh Kumar Bangah, is a unit under the Berjaya Group conglomerate, which has businesses in various sectors including hospitality and leisure, food and beverages, retail and gaming.
Berjaya Group’s 7-Eleven Malaysia franchise was relisted on the Malaysian stock market a second time in May this year. 7-Eleven Malaysia’s IPO raised $227 million.