BUSINESS

SNS NETWORK TO RAISE RM90.72 MLN FROM IPO

27/07/2022 01:31 PM

KUALA LUMPUR, July 27 (Bernama) -- SNS Network Technology Bhd expects to raise RM90.72 million from its initial public offering (IPO) en route to a listing on Bursa Malaysia’s ACE Market on Sept 2, 2022. 

In a prospectus with Bursa Malaysia today, the information and communications technology (ICT) system and solutions provider said up to 34.1 per cent or RM30.9 million of the total proceeds would be used to expand its device-as-a-service (DaaS) subscription-based service.

The remaining proceeds would be utilised for the setting up of new retail stores in the Klang Valley, Johor and Penang, construction of the regional hub, marketing activities, repayment of bank borrowings, general working capital and listing expenses.

In a separate statement, managing director Ko Yun Hung said the company sees huge potential in the DaaS market in Malaysia as more businesses had introduced remote or hybrid working options.

DaaS is a model for device leasing offered to customers based on monthly subscription payments.

“Since 2020 and up to June 30, 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 enquiries, we have entered into contracts with 26 governmental bodies amounting to RM247.49 million and three public listed companies amounting to RM550,000," he said.

SNS would be issuing 362.9 million new shares, representing 22.5 per cent of the enlarged share capital at an issue price of 25 sen per share. 

 Of the 362.9 million new shares, 80.6 million new shares will be made available to the Malaysian public via balloting and 48.4 million new shares for its eligible directors, employees and persons who have contributed to the success of the group.

The remaining 201.6 million new shares are reserved for private placement to Bumiputera investors approved by the Ministry of International Trade and Industry and 32.3 million new shares will be placed out to selected investors.

As part of its listing exercise, the existing shareholders of the company will also make an offer for sale of 48.4 million existing shares to selected investors by way of a private placement.

Based on the enlarged share capital of 1.61 billion shares, SNS is expected to have a market capitalisation of RM403.2 million, it added.

--BERNAMA


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