KUALA LUMPUR (May 31): Daythree Digital Bhd has inked an underwriting agreement with M&A Securities Sdn Bhd for its listing on the ACE Market of Bursa Malaysia Securities Bhd.

In a statement on Wednesday (May 31), the tech-driven global business services (GBS) provider said the initial public offering (IPO) entails a public issue of 110.4 million new shares in Daythree Digital, representing 23% of the enlarged share capital, and an offer for sale of 12 million existing shares to selected investors by way of private placement.

It said that of the 110.4 million new shares, 24 million new shares will be made available to the Malaysian public via balloting, followed by 12 million new shares for eligible directors and employees of the group under Pink Form allocations, while the remaining 74.4 million new shares are earmarked for private placement to selected investors.

M&A Securities will underwrite a total of 36 million new shares made available to the Malaysian public and by Pink Form allocations.

Daythree Digital focuses on customer experience (CX) lifecycle management services enabled by in-house developed digital tools, namely DAISY, FAITH and SAIGE. 

The company provides omnichannel CX, digital transformation and technology services to some of the leading brands in Malaysia.

It serves clients across diverse industries, including energy and utilities, telecommunications and media, financial technology and financial services, construction, e-commerce and retail, health technology, as well as travel and hospitality.

Daythree Digital managing director Raymond Davadass said the IPO exercise will allow the company to tap into the equity capital market to capitalise on future growth opportunities.

“According to an independent market research report, the Malaysian GBS industry is projected to maintain its growth trajectory, and is expected to grow from RM24.79 billion in 2023 to reach RM31.74 billion in 2027, representing a compound annual growth rate of 6.3% during this period.

“Factors boosting growth within the GBS industry is likely to come from businesses pursuing a leaner capital structure, and increasing outsourcing of business processes to GBS service providers, in order to access expertise in smart technologies, such as cloud-based solutions, data analytics, and intelligent automation,” he said.

Davadass said proceeds from the IPO will also be used to part-finance the additional working space required for its growing customer base, and the expansion of its headquarters to cater for the rising number of employees, as well as to set up a multipurpose facility for internal training and meetings.

He said part of the proceeds will also be used for capital expenditure on networking infrastructure, information technology hardware and software, branding, marketing and promotional activities, working capital requirements, and to defray the estimated listing expenses.

Daythree Digital targets to list on the ACE Market by July 2023.

M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.