Fatfish Internet Group-backed Singapore IT solutions company Cloudaron Group has made its debut on Bursa Malaysia’s new Leading Entrepreneur Accelerator Platform (LEAP) Market with the share opening at 15 sen and later reaching a high of 16.5 sen, above the issue price of 11 sen.
In its Tuesday listing, also the first on LEAP Market by a startup, the group had set out with an issue of 50 million new shares, that represented 6.4 per cent of Cloudaron’s enlarged share capital which comes to around MYR5.5 million, ahead of the listing.
“With $20 million revenue recorded last FY, Cloudaron is hardly a startup, nonetheless it is beginning a new chapter in its public market life. The real work begins hereinafter,” said Kin Wai Lau Fatfish CEO in a LinkedIn post the same day.
In an interaction earlier this year, Lau had set out expectations that the company could raise anywhere close to $12 million in its listing which at that time could have happened in either Singapore or Malaysia.
The company plans to use the funds for working capital and expansion of its business to Indonesia and the Philippines.
“For a young, growing technology company, the decision to go public is indeed an exciting development for us at Cloudaron. Besides organic growth, Cloudaron will be exploring acquisitions to further accelerate growth,” said Cloudaron managing director and CEO Ong Chang Jeh in a report from Star.
The company has acquired two Singapore firms last year — Pro-Datech Systems and iTwin Pte Ltd– and was also looking for further acquisitions to fatten its portfolio before hitting an exchange, Lau had noted earlier.
“The company has always been on the lookout for strategic assets to acquire. For the acquisition we will look at a company in Southeast Asia, specially in Singapore, Malaysia and Indonesia. Particularly, SaaS and enterprise software are areas that we are looking at,” Lau said.
Cloudaron offers software, systems integration and services, and serves over 150 companies throughout the region with more than one million end-users. Being a profitable company, it generates 81 per cent of its revenue in Singapore.
“FY3/17, Cloudaron posted a net profit of S$1.72m (RM5.2mil), on revenue of S$22.9mil (RM69.6mil). The group generates 81% of its revenue in Singapore and has an order book of S$4.1 million as at end-Jun 2017,” CIMB Research has said.