KUALA LUMPUR: Pelaburan Mara Bhd (PMB) plans to more than double its stake in AppAsia Bhd by as early as this week, executives advising the investment agency said on condition of anonymity.
PMB, the investment arm of Majlis Amanah Rakyat or Mara, now owns a six per cent stake in AppAsia.
PMB is banking on fintech technology entities such as AppAsia which will benefit from the Covid 19 pandemic, and secure additional contracts that are monopolistic in nature.
DeVere Group, one of the world's largest independent financial advisory organisations, noted in a report that Covid-19-triggered social distancing, isolation and lockdowns had driven up the use of financial apps by 72 per cent.
AppAsia has a 12-year monopoly as the sole service provider for electronic bank confirmation platform for auditors in collaboration with the Malaysian Institute of Accountants.
AppAsia recently launched its eConfirm.my, the first and only industry-wide electronic bank confirmation platform providing electronic bank confirmation to all the auditors and banks operating in Malaysia.
The agreement with MIA will last for 12 years until 2030, with a pay-per-transaction revenue model.
The usage fee is RM15 per successful confirmation, thus generating income on a recurring basis.
Rakuten Trade's research team values the fintech company at 68 sen a share on the premise that AppAsia's 2021 pre-tax profit would jump by as much as 400 per cent to RM11.2 million from RM2.7 million.