Saturday 20 Jul 2024
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KUALA LUMPUR (Aug 22): SNS Network Technology Bhd said its shares offered to the public under its initial public offering (IPO) have been oversubscribed by 6.95 times. 

The ICT system and solutions provider is slated to make its debut on the ACE Market of Bursa Malaysia on Sept 2.

In a statement on Monday (Aug 22), the company said 8,257 applications for 640.84 million new shares were received from the Malaysian public.

Under the Bumiputera portion, 3,853 applications came in for 214.26 million shares, representing an oversubscription rate of 4.31 times.

For the remaining public portion, 4,404 applications for 426.59 million shares were received, representing an oversubscription rate of 9.58 times.

SNS Network also said that the 48.38 million new shares set aside for eligible directors, employees and persons who have contributed to the success of the company were fully subscribed.

The placement agent M & A Securities Sdn Bhd has also confirmed that the 282.34 million new shares made available for application by way of private placement have been fully placed out, the company said.

M & A Securities is also the adviser, sponsor and underwriter for SNS’ listing exercise.

At an issue price of 25 sen apiece, SNS Network aims to raise up to RM90.7 million from the issuance of the 362.9 million new shares under its IPO.

The company said it has earmarked RM33.4 million of the proceeds for capital expenditure, of which RM30.9 million is to be allocated towards growing its device-as-a-service (DaaS) subscription-based service, while RM2.5 million will be used to open 10 new retail stores in Klang Valley, Johor and Penang.

Another RM18 million of the proceeds will be used to part finance the construction of the company’s new regional hub in Petaling Jaya to support its nationwide expansions, while RM20 million will be used for repayment of bank borrowings, RM13.1 million for working capital, RM1.5 million for marketing of its JOI smart classroom framework, and RM4.7 million to defray listing expenses.

For the financial year ended Jan 31, 2022 (FY22), SNS Network’s profit after tax stood at RM35.92 million, compared with RM23.81 in FY21, RM7.78 million in FY20, and RM9.1 million in FY19.

Meanwhile, revenue totalled RM1.11 billion in FY22, RM721.47 million in FY21, RM675.28 million in FY20, and RM594.14 million in FY19.

Edited ByS Kanagaraju
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