SNS Network Technology Berhad, a provider of information and communications technology (ICT) systems and solutions, plans to raise RM90.7 million to expand its business through an ACE Market listing.
The company intends to use RM33.4 million (36.9%) of the proceeds from its initial public offering (IPO) for capital expenditure, of which RM30.9 million will be used to expand its device-as-a-service (DaaS) subscription business, and RM2.5 million for the opening of 10 new retail outlets.
DaaS is a business model that allows customers to lease equipment on a monthly subscription basis, giving them the flexibility to lease equipment based on their latest business needs, avoiding the need to spend a lot of capital on ICT products.
Mr Ko Yun Hung, Managing Director of SNS, said that the company is optimistic about the huge potential of the DaaS market as more and more companies introduce remote or hybrid working models.
Of the other funds raised from the listing campaign, RM20 million (22.0%) will be used to repay the bank loan, RM13.1 million (14.5%) for general working capital, RM1.5 million (1.7%) for JOI® marketing activities and the remaining RM4.7 million (5.1%) for listing expenses.
In conjunction with the IPO, SNS will issue 362.9 million new ordinary shares, representing 22.5% of the enlarged share capital, at an issue price of 25 sen per share.
Of the 362.9 million new ordinary shares, 80.6 million will be made available to the public through a lottery; 48.4 million will be allotted in the form of a pink form to eligible directors, employees and accomplished SNS members; 201.6 million will be reserved for private placement by indigenous investors approved by the Ministry of International Trade and Industry; and the remaining 32.3 million will be allotted to selected investors. The remaining 32.3 million shares will be allocated to specific investors.
The company’s existing shareholders will also offer 48.4 million shares to specific investors through a private placement in conjunction with the listing. Based on the enlarged share capital of 1,610 million shares, SNS will have a market capitalisation of RM403.2 million. The IPO will be open for application from today until 18 August 2022. A copy of the prospectus can be downloaded from the website of the Malaysian Stock Exchange (www.bursamalaysia.com).
SNS is expected to be listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong on 2 September 2022.
M & A Securities Sdn Bhd will serve as advisor, sponsor, underwriter and placement manager for the said IPO.
