Tie-up with US firm Will Boost Customer Base: Advance Information

IPO Watch
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Apr 06, 2006 - Business Times


LOYALTY programme solutions provider Advance Information Marketing Bhd (AIMB) will be tying up with US-based Colloquy as their Asia-Pacific partner.


"Colloquy is the world leader in offering brand loyalty solutions and we're more than happy to be their extension in the Asia-Pacific region,"AIMB chief executive officer Nyang Koon Seng said.


Mesdaq-bound AIMB provides services such as data management to marketing services, contact centre, procurement and fullfilmenet, as well as technology solutions.


Colloguy provides research services like competitive loyalty programme scans, custom programme summaries, loyalty market-size reports and category audits related to any industry, global region or specific demographic.


"Through this collaboration with Colloquy, we should be able to expand our customer base," Nyang said.


AIMB will be raising RM14.7 million by offering 35 million shares at 42 sen each for its proposed listing on the Mesdaq market, scheduled April 18. One million shares are allocated for subscription.


Of the RM14.7 million to be raised, RM3.9 million will be used for business expansion, RM4.8 million for research and development and RM3 million for purchase of software and hardware equipment. Working capital will take up RM1.3 million and the remaining RM1.7 million for listing expenses.


In Malaysia, loyalty programmes usually take the form of a card to collect points which can then be redeemed for gifts.


Nyang foresees a rapid growth in business-to-business loyalty programmes whereby vendors reward agents and not end consumers. L'oreal, for example, reward hair salons and beauty houses for using their products.


Currently, AIMB's clients are companies in the sectors of consumer goods, financial services, hospitality, retail and electronics, as well as telecommunications.


Its subsidiary Customer Loyalty Solutions Sdn Bhd is associated with companies that manage RealRewards in Malaysia and MoreRewards in Singapore, which have a combined card membership of more than five million.


In its prospectus, AIMB forecasts that it can make RM9 million net profit on the back of RM41.6 million revenue for the current financial year.