Cloudaron aims for SEA expansion through Bursa Malaysia LEAP listing

CJ Ong
CJ Ong: “Cloudaron already has the expertise and Intellectual Property, and now aims to expand our customer base and market share throughout SEA.”

Cloudaron Berhad has become the first company to seek listing on Bursa Malaysia’s Leading Entrepreneur Accelerator Platform (LEAP). Seeking an issue of 11 sen per piece to raise RM5.5 million for the company, it is expected to capitalise at some RM85.3 million. Established as a Singapore-based firm in 2009, the company is today a well-established information technology solution provider with ambitious plans to expand throughout the South East Asian region. 

The company is estimating 43% of the proceeds from the listing will go towards further expansion in ASEAN, while listing expenses and working capital will make up major portions of the remainder. To date it has RM58 million in total assets against RM24.2 million in total liabilities. 

Cloudaron caters primarily to small and medium enterprises and large corporations in ASEAN, throughout which it intends to expand primarily in Indonesia and the Philippines. 

Among its impressive clientele are banks such as RHB Bank and Bank of Singapore, government bodies such as the Monetary Authority of Singapore, and education institutions such as Sunway University and Universiti Sains Islam Malaysia.


According to Founder and CEO CJ Ong, Cloudaron already “has the expertise and Intellectual Property, and now aims to expand our customer base and market share throughout SEA.”

As a whole, Cloudaron saw an 8.3 percent decline in revenue for the financial year 2017. This was in part due to a new focus on providing holistic cloud solutions and involved workspace transformation which generate a higher gross profit margin.

Its workspace transformation business, however grew 415.3% on its venture into the Indonesian market, increased contribution from the Malaysian market, and increase in recurring revenue from licensing of software.

Already, Cloudaron has partnered major players in the Cloud space such as Microsoft, which engages them directly for certain deployments in a Cloud Delivery across Singapore, Malaysia and the Philippines.

Gopi Ganesalingam

Aside from that, Cloudaron is also working closely with Malaysia Digital Economy Corporation (MDEC) as part of the latter’s Global Acceleration and Innovation Network (GAIN) programme. Through GAIN, MDEC aims to assist Cloudaron in areas such as market access and visibility.

“Cloudaron has very specific specialties that are very unique to its core business. We are extremely pleased that they have chosen Malaysia to realise its listing aspirations, and as a springboard to ASEAN,” said Gopi Ganesalingam, ‎Vice President – Enterprise Development, MDEC (pic).

Cloudaron held RM5 million cash for the financial year ended March 31, 2017. About 81% of the group’s revenue came from Singapore, Indonesia makes up 12.6% and Malaysia 6.3%. For the financial year ended March 31, 2017, the company made a net profit of RM5.2 million.

This figure was a stunning 3,818.2% higher than the RM126,000 made for the same period in financial year 2016. This increase was due to higher gross profit from all business activities; and a 103.9% increase in other income, mainly due to reversal of bad debts and inventory write-downs as well as an increase in grant received from the Singapore government.