BUSINESS

SNS NETWORK INKS IPO UNDERWRITING AGREEMENT WITH M&A SECURITIES

14/06/2022 03:00 PM

KUALA LUMPUR, June 14 (Bernama) -- Information and communications technology (ICT) system and solutions provider SNS Network Technology Bhd has inked an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its initial public offering (IPO) exercise to list on the ACE Market of Bursa Malaysia Securities Bhd.

The IPO entails a public issue of 362.9 million new shares in SNS, representing 22.5 per cent 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 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, while the remaining 32.3 million new shares will be placed out to selected investors.

“Proceeds from the IPO will be used mainly for capital expenditure to expand the company’s data as a service (DaaS) subscription-based service and to part-finance the construction of the company’s new regional hub.

“DaaS is a model for device leasing offered to customers based on monthly subscription payments. The service provides customers with the flexibility to adjust their usage according to their latest business and operational needs to avoid large capital expenditure for bulk purchase of information and communications technology (ICT) products,” it said.

Part of the IPO proceeds will also be used to set up 10 new retail stores, and marketing activities, repay bank borrowings, and general working capital and defray the estimated listing expenses.

Its managing director Ko Yun Hung said the listing is timely for the group as it will enable SNS to tap into the equity capital market to raise funds to accelerate the growth of core business activities.

“The outbreak of the COVID-19 pandemic in 2020 and 2021 had led to the imposition of movement restrictions by the government to curb the spread of the virus.

“This has boosted the demand for ICT products and services due to working from home arrangements and online classes for students,” he said.

SNS is scheduled to be listed on the ACE Market by September 2022.

-- BERNAMA

 


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