OpenSys (M) Bhd, which is expected to list on Mesdaq Market on Jan 29 2004, will use RM5.60 million from the proceeds of its initial public offering (IPO) on building Efficient Service Machines (ESMs) and RM4.92 million on research and development (R&D). It is also looking to penetrate the financial services market in Australia, China, India and the UK.
An MSC-status company, OpenSys develops and markets multi-function non-cash self-service machines for customers in the financial services industry and provides IT services in connection with its own products and software products of third parties.
Its Touch ESM Series 3000 is a family of ESMs used for various transactions that include cheque deposits without the need for bank-in slips or envelopes, payment of bills, purchase of insurance policies, subscription of shares, opening fixed deposit accounts and topping up stored cash value of smart cards.
Its main software product is the eSys suite of enterprise software that allows financial institutions to use various channels to deliver products and services to customers.
Chief executive officer Tan Kee Chung said OpenSys intends to develop other models of Touch ESMs to address specific customer needs such as bar-coded bill payment, cheque book issuance, optical character recognition and statement printing.
It also intends to develop further modules of eSys to assist financial institutions to provide a wider range of financial services such as banking, insurance and stockbroking in line with the trend of cross-selling of products. In addition, it will develop modules that enable financial institutions to create customer profiles so they can provide more personalised products.
“R&D is important to OpenSys because it increases our expertise and knowledge of our products and markets. This enables us to improve and expand our product range to allow us to offer a range of products and services to customers as well as launch new products in anticipation of market demand. This way, we are able to meet changing technologies, industry standards and customer demands.
“In the areas of self-service machines and banking and insurance systems, OpenSys intends to make arrangements with business partners, research institutes and institutions of higher learning in Malaysia and elsewhere for joint research and product development,” Tan added.
On sales and marketing, he said the company will increase its marketing and sales channels worldwide through signing up distributors and partners to market its products and deliver its services. It will also engage in pre-sale activities, participate in solution shows and user conferences and advertise in financial services journals.
Currently, its distribution and support partners in the region include CSA Malaysia, CL Computers of Singapore, PT Warna of Indonesia, Leverage Systems Technologies of the Philippines, Digisoft Business Solutions of Brunei, CL Systems (China) of Hong Kong and Cash Handling System of Australia/New Zealand.
To date, nine major institutions in Malaysia have installed OpenSys’ Touch ESM solutions. They are Malayan Banking Bhd, Public Bank Bhd, Standard Chartered Bank Malaysia Bhd, Alliance Bank Bhd, Bumiputra-Commerce Bank Bhd, EON Bank Bhd, United Overseas Bank Bhd, Malaysian Assurance Alliance Bhd and Maxis Communications Bhd.
Recently, Standard Chartered Bank Singapore, Hong Kong and Brunei introduced the Touch ESMs, making it a first for those countries.
In addition, four financial institutions are users of OpenSys’ eSys software.
The company has been profitable since it began operations in 1996. For the year ended Dec 31 2002, it posted a profit after tax of RM1.27 million. It rang up sales of RM11.49 million in Malaysia, RM3.26 million in Europe and RM7.23 million in Asia Pacific excluding Malaysia.
OpenSys is making a public issue of 53 milion shares of 10 sen each by way of private placement at an issue price of 24 sen a share. Upon completion of its IPO, its paid-up capital will be increased to RM22.18 million. The adviser is Commerce International Merchant Bankers Bhd.
Press Release by OpenSys
Date: Jan 8 2004
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