UnrealMind hopes to raise RM10mil from Mesdaq listing

UnrealMind Interactive Bhd, enroute to a listing on the Mesdaq market next month, plans to raise RM10mil from its initial public offering (IPO) and spend 36% of the proceeds on advertising and promotion (A&P) locally and abroad.

Chief executive officer Tan Swee Yeong said the RM3.6mil to be utilized over the next 15 months for its already heavy annual A&P spending, was mainly aimed at beefing up revenue from the company’s popular lifestyle portal Shabox.

UnrealMind’s A&P budget for last years was RM4.5mil, he said.

Tan said for a leading and mass market-oriented brand like Shabox, educating and promoting the brand to end-users was as important as continuous innovation in content.

If you can’t do these, it is as good as doing nothing,” he said after the signing of an underwriting agreement between UnrealMind and K&N Kenanga Bhd in Kuala Lumpur yesterday.

The company is a leading lifestyle content and services provider for the mobile telecommunications industry, whose products are targeted at end-consumers via telecommunications service providers.

It is involved in developing and marketing value-added mobile content, including games, logos and messages, ring tones, colour and animation, mobile karaoke and mobile messenger.

UnrealMind is making a public issue price of 80 sen each, of which 3 million will be offered to the public, 2 million for directors, employees and business associates and 7.5 million for private placement. The public issue will raise UnrealMind’s paid-up capital to RM5mil from RM3.75mil.

UnrealMind is believed to be the first Malaysian company to have successfully localized, exported and introduced mobile games overseas, including to Singapore and Britain.

In the financial year ended Dec31, 2003. the company’s revenue soared to RM10.2mil from RM52,000 in 2002. It posted a net profit of RM3.15mil against a net loss of RM213,000 in 2002.