UK-listed AIQ completes acquisition of Alchemist Codes marking the first ever Reverse Takeover of a Malaysian company on the LSE

(Kuala Lumpur, Malaysia; 8 April 2020) Alchemist Codes Sdn Bhd, which provides B2B IT solutions and services and has a B2C cashback e-commerce platform, has become the first Malaysian company to be reverse acquired by a company listed on the London Stock Exchange.

KL-based Alchemist Codes has been acquired through a reverse takeover by UK-listed AIQ Ltd for approx. RM 12.4 million (£2.3 million). Since being established two years ago by Charles Yong Kai Yee to provide secure corporate messaging solutions, Alchemist Codes has expanded to offer customers a full suite of IT solutions and services. At the same time, Alchemist Codes recognised the significant growth opportunities in the Malaysian e-commerce and cashback market and the potential of big data and AI for this sector – which led to the development of OctaPlus.

OctaPlus is a web and mobile app that, using sophisticated data mining and AI, provides a personalised and convenient experience for shoppers and rewards them for their purchases while supporting retailers with user targeting and analytics. Since its soft launch last year, OctaPlus has attracted a significant increase in the number of retailers and users.

Now, thanks to the backing of AIQ, Alchemist Codes plans to roll out marketing campaigns to increase the OctaPlus user base and grow the number of retailers on the application – providing them with high levels of support and data analytics. Alchemist Codes will also be able to grow its IT consultancy business. To date, Alchemist Codes’ customers have been in Malaysia, Singapore and Indonesia. The company plans to use the UK listing to help it reach Asian companies with subsidiaries in the UK to provide those operations with a messaging solution that will be better suited to their needs in terms of language, privacy and user habits.

Charles Yong, Founder & CEO of Alchemist Codes, said: “This is a great achievement for Alchemist Codes. With the greater resources provided by AIQ and its listing, we can drive the expansion of OctaPlus both here in Malaysia and regionally. OctaPlus has a unique offer for shoppers and retailers with great potential for growth in this market. We also look forward to growing our software business and, in particular, using our heightened international reputation through the UK listing to reach new markets. We are proud to be the first Malaysian company to have been acquired via an RTO on the London Stock Exchange and believe many more local companies could benefit from entering the UK capital markets.”

AIQ was formed by Nicholas Soon and Marcus Lee, who reside in Malaysia, as a special purpose acquisition company to acquire businesses in the e-commerce sector with a focus on opportunities in data mining, AI and social and online media such as instant messaging. It was listed on the main market of the London Stock Exchange in 2018 having raised approx. RM21.6 million (£4 million).

Nicholas Soon, Executive Director of AIQ, said: “Alchemist Codes met all of our criteria for an acquisition target. We believe that we can support the business in expanding its customer base and in continuing to enhance its technology and product offering. We are pleased that we have been able to bring an innovative Malaysian company to the international capital markets, particularly given the challenging economic climate. We look forward to working with the Alchemist Codes team and reporting on our progress.”