KUALA LUMPUR (Aug 5): TA Securities has set a target price of 41 sen for ACE Market-bound Agmo Holdings Bhd, representing a 57.7% premium to its initial public offering (IPO) price of 26 sen per share.

In a note on Friday (Aug 5), the research house said at the IPO price of 26 sen, the homegrown digital solution provider is priced at a trailing price-to-earnings ratio of 12.6 times over its FY22 core earnings per share.

“This takes into account the group’s established track record, experienced management team and technical expertise, as well as its robust margins and earnings growth prospects,” it said.

Agmo, which is slated to list on the ACE Market of Bursa Malaysia on Aug 18, aims to raise RM22.1 million from its IPO exercise.

The group will allocate RM9.47 million of the proceeds towards research and development, sales, marketing and business development.

RM6.22 million will be set aside for working capital and related capital expenditure, and RM2.54 million will be allocated for establishing a training and development centre.

Meanwhile, RM690,000 will be earmarked for regional expansion in Singapore, and RM3.18 million for listing expenses.

Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.

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Agmo Holdings to raise RM22.1m via IPO, debut on ACE Market on Aug 18