Datasonic IPO

Datasonic shares surge on Bursa debut

Datasonic Group Bhd, information and communications technology (ICT) solutions provider, including smart card personalisation in Malaysia, made its debut on the Main Market of Bursa Malaysia today at RM2.30 for a 30 sen premium from its RM2 initial offer price, with 907,500 shares traded as at 9 am.

Managing Director Datuk Hanifah Noordin said the group was happy with the opening price and hopes for a steady growth.

"The reason why we went for listing on the Bursa Malaysia is to expand our business overseas. In the past, eventhough we have the credibilities, we do not have the vehicle that foreign governments were looking at.

"One of the things that we do well in Malaysia is the Europay, Mastercard and Visa migration, and we have done it for most of the banks here. We want to take this credentials overseas, whereby the potential and population are much bigger," he told a press conference.

Hanifah said when the group was first incorporated in 2005, their business revenue came 100 per cent from its projects with the government, and currently, the percentage had reduced to 80 per cent.

"We try very hard to diversify our revenue sources, but we still see our revenue coming mainly from our projects with the government, including foreign governments," he said, adding that the group planned to initially focus on neighbouring Asean countries and the Middle East.

Commenting on the utilisation of the listing proceeds, Chairman Tan Sri Hashim Mohd Ali said a large portion would be used as capital expenditure, namely the setting up of a new smart card manufacturing plant and new headquarters-cum-regional personalisation solutions centre.

"These are all in line with the group's plans to grow our business and streamline our operations," he said.
Moving forward, Hashim said the group's prospects are looking good, driven by its strong RM500 million order book.

Earlier this year, Datasonic Group secured a five-year contract through an open tender to supply 10 million new passport polycarbonate datapages with laser engraving personalisation equipment to the Immigration Department from Feb 1, 2013 to Jan 31, 2018. -- Bernama