Wednesday, January 5, 2011

IPO ... Century Software

Financial software solutions provider Century Software Holdings Bhd plans to raise RM21.40 million from its listing exercise, of which RM6 million would be used for research and development.

It would issue 23 million new shares of 10 sen each at an offer price of 93 sen each. Of the 23 million new shares, 8.55 million shares would be placed out; 5.80 million shares for eligible directors, employees and business associates; and the remaining 8.65 million shares for the Malaysian public.

Of the RM21.40 million, Century Software said RM6 million would be for R&D, while the remaining amount would be for capital expenditure for business expansion, working capital, repayment of bank borrowings, and listing expenses.

As part of the listing exercise, the shareholders would be offering for sale 10.9 million shares.

The flotation exercise aims not only to create a higher profile for the group, but more importantly to take our R&D capability to the next level. To this end, it plans to enlarge our current R&D team and use part of the IPO proceeds together with its internally-generated cash flows to develop new applications and solutions for both its financial software solutions and payment aggregator segments.

Century Software’s recent R&D achievements and commercialisation included the electronic revenue accounting system for the Inland Revenue Department and the eClaims System, a self-service online claims system.

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