Starbox Group (NASDAQ:STBX), a Malaysian fintech firm, begins trading as a public company today. The company specializes in handling repayments and cash rebates. About $23 million is due to be raised in the debut of STBX stock.
It’s possible the stock may take off given what happened with other recent Asian initial public offerings, like Magic Empire (NASDAQ:MEGL) and AMTD Digital (NYSE:HKD). Both had brief speculative run-ups before falling. It’s also possible the company will just trade on its fundamentals.
The IPO is priced at $4 per share. The offer is for 5 million shares. The market cap implied by the stock price is $202 million. A form F-1 has also been filed at the Securities and Exchange Commission (SEC).
What’s Inside the Starbox?
Starbox, which was founded in 2019, calls its launch a “litmus test and ice breaker” for other Malaysian IPOs, which had previously launched through special purpose acquisition companies (SPACs).
The company plans to use the money to improve its software and strengthen its brand in Asia. It then plans a multi-nation expansion through the region, starting in Thailand next year. The idea is to build a centralized depository for payments, digital advertising and rebates.
For 2021, the company claimed net income of $1.45 million on revenue of $3.17 million. Its fiscal year ends in September. The F-1 lists operating cash flow of $1.9 million last year, with cash on hand at $2.3 million at the end of the year.
What Happens Next for STBX Stock?
What happens next depends on whether American investors rush into the stock and cause the speculative run-up they’re looking for.
From a business point of view, however, this looks more like a small company looking for stability and growth in the financial data part of a growing market. The primary concern is that, since its fiscal year ends in September, the numbers reported to the SEC are dated, ending almost a year ago.
On the date of publication, Dana Blankenhorn held no positions in any company mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
