KUALA LUMPUR (May 9): ACE Market-bound Cloudpoint Technology Bhd, which launched its prospectus on Tuesday (May 9), aims to raise RM40.4 million from its listing exercise.

In a statement on Tuesday, Cloudpoint which is an information technology (IT) solutions provider in enterprise and data centre networking, cybersecurity, cloud services and software application solutions said the demand for networking and cybersecurity solutions is set to increase further in the future.

The company said from the IPO proceeds of approximately RM40.4 million to scale and accelerate its business in the high-growth areas of cloud and cybersecurity, RM13.3 million will be used towards business expansion, including building a new security operations centre, enhancing the existing network operations centre and establishing a new public cloud infrastructure.

Meanwhile, RM15.8 million will be used towards working capital, RM7.8 million for office relocation and the remaining RM3.5 million for the listing expenses.

Cloudpoint executive director/chief executive officer Choong Wai Hoong said the company has been growing from strength to strength to become one of the prominent IT and cybersecurity solution providers in the industry.

“The IPO is a crucial milestone that will propel Cloudpoint forward, to scale up and accelerate our business growth.

“We will continue to deliver innovations and ensure sustainable profitability for our company, and more importantly, we are committed to delivering long-term value and exceptional returns to our shareholders,” he said.

Meanwhile, M&A Securities Sdn Bhd deputy head of corporate finance Danny Wong said with many organisations and enterprises increasing their IT budgets to fund business-driven priorities and replace legacy systems, Cloudpoint is well-positioned to capitalise on the rapidly growing IT solutions market.

Cloudpoint’s IPO entails a total offering size of 159.48 million shares at the IPO price of 38 sen per share, where 53.16 million shares will be offered to institutional and selected investors, 26.58 million shares will be made available to the Malaysian public via balloting, 13.29 million shares will be set aside for eligible directors/employees and 66.45 million shares for investors approved by the Ministry of Investment, Trade and Industry.

M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for Cloudpoint’s IPO.

The stock is tentatively slated to be listed on May 29.