KUALA LUMPUR: Sersol Bhd’s new managing director Mohamed Ridzuan Mohd Nor says his immediate aim is to draw up a three-year
roadmap for the company’s migration to the Main Market.
To make that leap, a company will have to produce an uninterrupted after-tax profit of RM20 million over a period of between three and five financial years, with an after-tax
profit of RM6 million in the year the application is made.
“We can do it organically or via mergers and acquisitions. We are not lacking in cash due to our restructuring exercise,” Mohamed Ridzuan told Business Times in an interview.
Sersol has about RM9.1 million in cash as at end of June this year.
He said the interest in the company can only grow stronger if Sersol is able to match market expectations.
“Not all companies on the ACE Market are garbage, or run by market makers. We forget that some of the top mid-cap stocks
today actually got their first break on the ACE Market,” Mohamed Ridzuan added.
From the more than 150 companies listed on Bursa Malaysia’s alternative market since its inception in 1997, some 25 companies have managed to migrate to the Main Market.
Among the notable names are JobStreet Bhd, Green Packet Bhd, TMC Life Sciences Bhd, Perisai Petroleum Teknologi Bhd, Three-A Resources Bhd and Notion VTec Bhd.
While being candid on the company’s plans, Mohamed Ridzuan, however, was evasive when asked to comment on him taking a
controlling stake in Sersol.
“For now, officially I do not own shares in Sersol, but the capital market does intrigue me,” he said.
Mohamed Ridzuan, who is the son of Khazanah Nasional Bhd executive exco chairman Tan Sri Nor Mohamed Yakcop, took over as Sersol’s managing director last week after its founder and major shareholder Tan Fie Ping resigned due to “personal reasons”.
“I got into Sersol because I believe in the company and the paint business. However, the existing structure in the company needs to be fine-tuned.
“For example, do you know that Sersol is the largest publicly-traded commercial paint maker in Malaysia?” he asked.
"From branding to marketing, the company needs an overhaul," said Mohamed Ridzuan, adding that he is in the midst of hiring a merchant bank to help advise on how Sersol can move forward.
"It might be via mergers and acquisitions or we might even look at branching out to the industrial paint sector," he said.
The jury is still out there on Sersol, although that has not stopped the market from speculating that Mohamed Ridzuan's entry into Sersol is merely the tip of the iceberg for what is in store for the company.
Such optimism has helped push the shares up by more than 300 per cent this year, as investors wait to see if Sersol's rise has more to do with hot air or if the company is indeed the true crown prince of Malaysia's ACE Market.