ACE Market Debutant Vetece Aims To Expand Operations In Singapore

KUALA LUMPUR, Aug 28 (Bernama) -- Vetece Holdings Bhd, an enterprise information technology (IT) solutions provider, aims to expand and strengthen its Singapore operations following its listing on the ACE Market of Bursa Malaysia.

Its non-independent executive director and chief executive officer, Chan Wai Hoong, said proceeds raised from the listing exercise will enable the company to expand its services to all operating companies in the Asian region.

"I think it is a good opportunity for us to use these proceeds to expand and strengthen our Singapore operations, not only to tap into the Singapore market but also in the Asia-Pacific region.

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"The reason is that many regional headquarters are located in Singapore," he told reporters after Vetece Holdings’ listing on the exchange today.

Vetece Holdings opens at 50 sen, notching a premium of 25 sen from its issue price of 25 sen, with 6.99 million shares traded.

Chan also said the company’s flotation exercise on the ACE Market will improve its branding and encourage its customers to tap into the larger project values and services.

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The listing would help enhance the company's brand presence as it aims to become a leading Malaysian IT company providing large-scale digital services, he added.

“There are also many opportunities to expand our technology partnerships as several technology partners have already approached us. We want to be able to secure larger projects in the future,” Chan said.

The company has raised a total of RM24.5 million from its initial public offering.

In a separate statement, Vetece said out of the total proceeds, the group has earmarked RM2.2 million (9.0 per cent) for expansion of new core products and services including new artificial intelligence-driven data handling and analytics solutions.

Some RM3.3 million (13.4 per cent) will be invested in strengthening its operations in Singapore, and a further RM3.8 million (15.5 per cent) has been set aside for establishing a Centre of Excellence for software solutions.

The group will utilise RM6.5 million (26.6 per cent) for hardware and software licensing fees, RM4.0 million (16.3 per cent) for loan repayments, and the remaining RM4.7 million (19.2 per cent) to defray listing expenses.

-- BERNAMA