My E.G. Services shares rose early Monday after news that it secured an extension for its contract to provide immigration-related services for the Malaysian government.
Shares of the digital-services company jumped as much as 8.3% and were recently 5.6% higher at 0.75 ringgit ($0.16), trimming 12-month losses to 9.8%.
My E.G. Services said late Friday that the Ministry of Finance has agreed to extend its role as the provider of online services for the country’s immigration department, and has also appointed it as the collection agent for government revenue.
The terms of the contract will be finalized at a later date, the company said in a bourse filing, adding that it doesn’t anticipate any issues in formalizing the agreement.
The extension is likely to benefit both earnings and net assets per share for 2023 onward, it said.
My E.G. Services’ previous immigration-services contract ran from May 23, 2020 to May 22, 2023, and had an approximate value of MYR208 million.