Pelaburan Mara Bhd, plans to more than double its stake in AppAsia by as early as this week to more than 12 per cent.
The investment arm of Majlis Amanah Rakyat bought a 6 per cent stake or 4.4 million shares worth more than RM2 million in the company last Friday.
A source said Pelaburan Mara is banking on fintech technology entities such as AppAsia which will benefit from the COVID-19 pandemic, and secure additional contracts that are monopolistic in nature.
“DeVere Group, one of the world’s largest independent financial advisory organisations, said in a report that Corona virus-triggered social distancing, isolation and lockdowns have driven-up the use of financial apps by 72 per cent and this applies to AppAsia as well,” said the source.
AppAsia has a 12 year monopoly as the sole service provider for electronic bank confirmation platform for auditors in collaboration with the Malaysian Institute of Accountants (MIA).
AppAsia recently launched its eConfirm.my, the first and only industry-wide electronic bank confirmation platform providing electronic bank confirmation to all the auditors and banks operating in Malaysia.
The agreement with MIA will last for 12 years until 2030, with a pay-per-transaction revenue model.
The usage fee is RM15 per successful confirmation, thus generating income on a recurring basis.
Japan’ Rakunten which is the world’s third largest retail broker values the fintech company at 68 sen a share from 47 sen currently on the premise that AppAsia’s 2021 pre tax profit will jump by as much as 400 per cent to RM11.2 million from RM2.7 million.
