Catcha Media to raise RM17.25m from IPO

KUALA LUMPUR: Catcha Media Bhd plans to raise RM17.25 million under its listing exercise, where it will issue 23 million new shares at an issue price of 75 sen each.

Catcha Media, which is a media owner and operator of a magazine publishing business and an online media business, is seeking a listing on the ACE Market of Bursa Malaysia Securities Bhd.

Of the 23 million new shares, it is offering three million shares to the public while the bulk or 20 million shares will be placed out.

As part of the listing exercise, the shareholders are offering for sale 11 million shares to identified investors.

Catcha Media would use RM13.15 million of the RM17.25 million in proceeds from the listing exercise for working capital while RM2 million would be for research and development and the remaining RM2.1 million for listing expenses.

According to the prospectus, it publishes 14 magazine titles while the online media business sells internet advertising space to Malaysian brand owners and advertising agencies.

For its financial year ended Dec 31, 2010, Catcha Media’s revenue was RM35.42 million and net profit RM8.10 million. The online media business accounted for 81.75% of Catcha Media’s earnings.

“Moving forward, Catcha Media seeks to expand by way of acquiring more representation and sales rights for local and international online PROPERTIES [], while leveraging its magazine publishing business to grow its online media business,” it said.

To recap, in early 2009, Catcha Media’s online media business entered a strategic alliance with Microsoft.

Under the collaboration, Catcha Media exclusively sells, promotes and monetises Microsoft’s entire suite of online products in Malaysia.

Catcha Media also has exclusive sales rights for leading Malaysian website, Lowyat.net. In total, media properties controlled by Catcha Media reaches 9.78 million Malaysians.

Frost & Sullivan reported online advertising expenditure in Malaysia is expected to grow

at a compound annual growth rate (CAGR) of 56.63% per year for the next five years. Frost & Sullivan also estimates that Catcha Media captured a 26.62% share of Malaysia’s online advertising market in 2010.