SNS TO RAISE RM90.7 MIL FROM IPO FOR BUSINESS EXPANSION
SNS Network Technology Berhad (“SNS” or the “Company”) expects to raise RM90.7 million under its listing exercise on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) for business expansion.
The Company plans to use RM33.4 million (36.9%) raised from the initial public offering (“IPO”) for capital expenditure of which RM30.9 million will be used to expand its device-as-a-service (“DaaS”) subscription-based service and RM2.5 million to set-up 10 new retail stores in the Klang Valley, Johor and Penang.
What is Daas?
DaaS is a model for device leasing offered to customers based on monthly subscription payments. The service provides customers the flexibility to adjust their usage according to their latest business and operational needs to avoid large capital expenditure for bulk purchase of ICT products.
What Does The MD of SNS Have To Say?
“Since 2020 and up to 30 June 2022, SNS has entered into 82 DaaS subscriptions with a total subscription value of RM255.86 million and received 75 enquiries from governmental bodies and public listed companies.
“From the above mentioned enquiries, we have entered into contracts with 26 governmental bodies amounting to RM247.49 million and three public listed companies amounting to RM0.55 million.
“Based on enquires from potential customers, SNS will purchase ICT products such as desktops, laptops, interactive smartboards, workstation, digital signages, printers and servers to support the expansion of the service,”
“The Regional Hub, which is expected to be operational by 2026 will include experience centres for SNS to showcase new and innovative ICT solutions on the Internet of Things such as smart homes, smart retail, smart education, smart signages and smart shelving.
“It will also have storage facilities, live video areas, training centres, workshops and office facilities,” Mr Ko Yun Hung (吴云汉),Managing Director of SNS
What About The Rest Of The Proceeds?
The remainder of the proceeds will be used for the repayment of bank borrowings amounting to RM20.0 million (22.0%), RM13.1 million (14.5%) for general working capital, RM1.5 million (1.7%) to fund the marketing activities for JOI® while the remaining RM4.7 million (5.1%) to defray the estimated listing expenses.
Under the listing exercise, SNS is issuing 362.9 million new shares in SNS, representing 22.5% of the enlarged share capital at an issue price of RM0.25 per share.
Of the 362.9 million new shares, 80.6 million new shares will be made available to the Malaysian public via balloting; 48.4 million new shares for its eligible Directors, employees and persons who have contributed to the success of SNS Group under the Pink Form Allocations; 201.6 million new shares are reserved for private placement to Bumiputera investors approved by the Ministry of International Trade and Industry, Malaysia while the remaining 32.3 million new shares will be placed out to selected investors.