RPGL Shares Plunge 10.04% as IPO Volatility, Debt Concerns Weigh on Investor Sentiment

The share price of Republic Power Group (RPGL) fell to a record low on October 15, 2025, despite an intraday gain of 0.00%, reflecting heightened volatility following its recent IPO filing. The stock closed at $4.00 on October 14, only to see after-hours trading drop to $4.48, a 10.04% decline, underscoring mixed investor sentiment toward the newly public company.

RPGL’s IPO, aimed at raising up to $16 million on NASDAQ, marks a strategic pivot to expand its ERP software solutions in Southeast Asia. The company specializes in customized systems for industries like trading, logistics, and property management, targeting corporate and government clients. However, its niche focus and reliance on regional markets—Singapore and Malaysia—pose risks amid macroeconomic uncertainties such as trade policy shifts or currency fluctuations.

Financials reveal a $1.85 million net loss despite $541,450 in revenue, highlighting high operational costs and reinvestment in growth. A debt-to-equity ratio of 65.68% raises concerns about liquidity constraints, particularly as the company scales operations. While its market cap of $85.905 million suggests speculative investor optimism, profitability remains unproven, with scaling efficiency and cost management critical to long-term viability.

Competitive pressures from global ERP giants like SAP and Oracle loom large. RPGL’s ability to differentiate through AI-driven threat detection and cloud-based monitoring will determine its market share. Additionally, growing demand for cybersecurity solutions in Southeast Asia offers growth potential but requires balancing innovation with compliance costs under regional data privacy regulations.

Short-term volatility is expected as the stock adjusts to public market dynamics. With only 8 full-time employees and limited liquidity, RPGL’s trading activity may remain erratic, deterring institutional investors. While its year-to-date return of 18.57% outperforms broader indices, sustainability hinges on demonstrating scalable revenue and mitigating debt risks. The IPO’s success will ultimately depend on its capacity to deliver on growth narratives amid a competitive and economically sensitive environment.