Synopsis:

This case study involves the public listing process of Datasonic, a small-medium sized enterprise (SME) that has been undergoing rapid growth. The company’s main business is smart card personalization. Datasonic was listed in the Main Market on 3 September, 2012 with an offer price of RM2.00 but its shares were oversubscribed by 14.16 times. Due to its listing process, Datasonic was able to raise capital totaling RM40.75million from the public issues. Following the listing in 2013, the profit of the company grew 191.27% and by early 2016, the market capitalization of the company had increased more than 17 times. However, the decline in share price to RM1.13 on 4 February, 2016 raised the concerns of the management team. Reevaluation of the financial position and the firm’s value were undertaken in order to be able to convince its investors and shareholders of the firm’s viability.