SNS Network Technology Bhd has entered into an underwriting agreement with M&A Securities Sdn Bhd for its initial public offering (IPO) exercise to list on the ACE Market of Bursa Malaysia.
The IPO entails a public issue of 362.9 million SNS shares, representing 22.5% of the enlarged share capital and an offer for sale of 48.4 million existing shares to selected investors by way of private placement.
Of the shares, 80.6 million will be made available to the Malaysian public, 48.4 million to eligible persons via pink form allocations, 201.6 million for private placement to Bumiputera investors and 32.3 million for selected investors.
The ICT system and solutions provider said in a statement that M&A Securities will underwrite a total of 129 million shares made available for application by the Malaysian public and pink form allocations.
“The listing is timely for our group as it will enable us to tap into the equity capital market to raise funds to accelerate the growth of our core business activities,” said SNS managing director Ko Yun Hung.
On outlook, he said the Covid-19 pandemic has boosted the demand for ICT products and services due to working from home arrangements and online classes for students.
“The pandemic has also served as a catalyst to the rapid adoption and execution of digitalisation initiatives in businesses to adjust to the new normal for business sustainability.
Proceeds from the IPO will be used mainly for capital expenditure to expand the company’s DaaS subscription-based service and to part finance the construction of the company’s new regional hub. Part of the proceeds will also be used to set-up 10 new retail stores, to fund the marketing activities for JOI, repay bank borrowings, general working capital and to defray the estimated listing expenses.
SNS is scheduled to be listed on the ACE Market of Bursa Securities by September 2022.
