DagangHalal, which provides an online service for checking whether products and services are suitable for Muslim consumers, says it will look to float on the London Stock Exchange’s AIM market.
Dealings in the Malaysian-based company, which it says is “the world’s first global e-marketplace to provide Halal verification”, is expected to start in March 2016.
With a booming Muslim population, the global halal industry has seen a rapid growth of late, and DagangHalal has enjoyed strong business on the back of it. Its revenues has increased from MYR1.18m ($281,000) in 2012 to MYR3.40m in 2015.
Mohamed Hazli Mohamed Hussain, chief executive officer of the company said:
The global Halal market is huge, and digital technology will bring that market into the 21st century. More than $1 trillion is spent on Halal food and beverages each year and that figure is expected to grow to $1.6 trillion by 2018. Market participants want to be sure that the products they are buying are genuine Halal and our HVE portal and e-marketplace is able, for the first time, to give complete confidence in product authenticity.
With widespread internet use and smartphone adoption across the world’s Muslim population, we now have the infrastructure to be able to check product authenticity anytime and anywhere. DagangHalal now has the opportunity to consolidate its position in the industry – delivering a single platform and a focal centre for global Halal trade and the proposed Placing and Admission to AIM will enable us to accelerate our growth towards this ambition.
Halal checking firm Dagang to join the London stock market
By Marion Dakers, Financial Services Editor, The Telegraph
A Malaysian halal-checking service is preparing to brave the volatile stock markets to join London’s junior market Aim.
DagangHalal, which claims to be the world’s first online hub for verifying suppliers of food and other goods adhere to Islamic principles, has hired London brokers Arden and Optiva to sell shares next month.
It is thought that Dagang is looking to raise up to £4m through share sales in both Malaysia and London, which will give it an overall market value of £12.5m.
The company posted revenues of 3.4m Malaysian ringgit (£572,000) for 2014, and made a profit of about 730,000 ringgit.
As well as working with various government and independent halal authorities across Asia to check food suppliers are within the rules, Dagang also sells consultancy services and offers training courses for suppliers.
The firm will authenticate food, consumer goods, pharmaceuticals and leisure sites if they comply with Shariah law. While the business currently operates in Asia, it aims to expand into European markets, consolidating the various certificates for suppliers into a single site.
“With widespread internet use and smartphone adoption across the world’s Muslim population, we now have the infrastructure to be able to check product authenticity anytime and anywhere,” said chief executive Mohamed Hazli Mohamed Hussain.
There has been a drought of major listings on the London stock market so far this year, as a 20pc drop in equity prices scared off all but a handful of companies.
However, a number of smaller players have floated on the Aim, including Circle Property and Shield Therapeutics.
This is thought to be the first IPO of the year for both Arden Partners and Optiva.