KUALA LUMPUR: Agmo Holdings Bhd has sealed an underwriting agreement with Kenanga Investment Bank Bhd (KIBB) for the company's initial public offering (IPO) on the ACE Market of Bursa Malaysia.

Agmo is a home-grown digital solutions and application development specialist.

KIBB has been appointed as Agmo's principal adviser, sponsor, underwriter, and placement agent for the IPO exercise.

According to the underwriting agreement, KIBB will underwrite 22.75 million new shares.

This comprised 16.25 million new shares made available to the Malaysian public and 6.5 million new shares made available to its eligible directors, key senior management, employees, and business associates who have contributed to the success of Agmo and its subsidiaries.

Bursa Malaysia has recently approved the listing of Agmo on the ACE Market.

The company targets a prospectus launch with an IPO exercise comprising 85 million new shares.

Chief executive officer Tan Aik Keong said the internet had become a necessary part of everyday life, and internet-based technology will continue to grow.

According to an independent market research report prepared by Smith Zander International Sdn Bhd, the local mobile and web application development industry is booming and saw a year-on-year (YoY) growth of 29.43 per cent in 2021.

"There are tremendous opportunities for Agmo to capitalise on the current digitalisation trend.

"With our expertise honed over the years, we are here to help facilitate businesses to embark on their digitalisation journey," he said in a statement today.