KUALA LUMPUR (Dec 27): PUC Bhd’s (KL:PUC) photography associate Pictureworks International Holdings Ltd has filed for a listing on Nasdaq in the US.
The initial public offering (IPO) of its 27.53%-owned associate has been registered with the US Securities and Exchange Commission though the terms such as pricing, number of shares to be offered, and timetable for the public offering were not disclosed.
Renaissance Capital, which provides research on IPOs, estimates that Pictureworks could raise up to US$8 million (RM35.85 million).
Pictureworks was founded in 2003 and provides imaging services to visitors in theme parks, tourist attractions, and pop culture events, throughout Malaysia, Singapore, Hong Kong, Macau and China.
The company has captured over 30 million images, and has over three million registered users on its website and mobile app. Pictureworks has also developed its own in-house system for previewing digital content named “TouchClear” that was patented in the US in 2018.
Based on the registration statement filed, Pictureworks intends to use 30% of the net proceeds raised from the IPO for business development and operations, and another 30% for research and development.
The company set aside 30% for mergers and acquisitions, and the remaining 10% for marketing and general working capital.
PUC bought a 33% stake in Pictureworks Holdings Sdn Bhd for RM52.8 million in April 2018. The company also announced a proposal to acquire the remaining 67% stake in Pictureworks for RM167.5 million in January 2019 before aborting in June 2020 due to the Covid-19 pandemic.
Other than PUC, the other major shareholders include PUC group managing director Cheong Chia Chou who owns 35.22% in Pictureworks, followed by Superb Go Sdn Bhd with 16.68% stake, Big Tree Global Network Ltd, Marvelous Culture and Film Ltd, and Winfiniti Group Ltd, each owning 4.9%.
Big Tree Global Network, Marvelous Culture and Film and Winfiniti Group are selling down their shares in the Pictureworks IPO, according to the registration statement filed.
For the six months ended June 30, 2024 (1HFY2024), Pictureworks reported a higher net loss of US$642,770 compared to a net loss of US$226,383 in the same period last year even as its revenue grew 10% to US$1.36 million.
Cathay Securities has been appointed as the underwriter of Pictureworks’s IPO, where the company plans to list on the Nasdaq under the symbol “PICW”.
