On 9 May 2023, Cloudpoint Technology Bhd (Cloudpoint), an established IT firm issued its IPO Prospectus (Part 1 and Part 2) and thus, extended an invitation to subscribe its shares at 38 sen a share. Upon listing, Cloudpoint would lift up the company’s market capitalisation to RM 202.0 million. The IPO subscription shall end on 15 May 2023 and its listing date is set to be 29 May 2023. Source: Page 19 of Cloudpoint’s IPO Prospectus Here, I’ll summarise 9 things to know before subscribing to its shares. These are as follows:

1. Business Model

Cloudpoint has 2 revenue models:

• One-off project-based income
• Recurring income

For its one-off project-based income, it comprises of:

• Sales of hardwares
• Software licence subscription fees.
• Implementation service fees.
• Cloud consultancy services and the use of cloud-based infrastructure.
• Cloud migration services.

For its recurring income, it consists of upgrading, maintenance & support works under contracts that span between 1-3 years. Cloudpoint charges annual fees & periodic (monthly or quarterly) service fees for such IT contracts to its clients....