KUALA LUMPUR (July 9): Enterprise information technology solutions provider Vetece Holdings Bhd has inked an underwriting agreement with Kenanga Investment Bank Bhd for its initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
The IPO entails a public issue of 98 million new ordinary shares, representing 25% of its enlarged share capital, as well as an offer for sale of 39.2 million, or 10% of its enlarged share capital, to selected investors by way of private placement, according to Vetece’s statement on Tuesday (July 9).
Out of the 98 million new ordinary shares, 19.6 million ordinary shares will be made available to the Malaysian public via balloting, while 9.8 million ordinary shares are allocated for eligible directors, key senior management, employees and persons who have contributed to the success of the group (pink form allocations).
The remaining 68.6 million ordinary shares are reserved for selected investors by way of private placement to selected investors.
Under the underwriting agreement, Kenanga IB will underwrite a total of 29.4 million ordinary shares made available to the Malaysian public under the pink form allocations.
With a track record spanning over 20 years, Vetece and its subsidiaries deliver enterprise IT solutions to empower businesses to achieve their operational requirements. Vetece implements and customises these IT solutions to suit clients’ requirements by leveraging the group’s strategic partnerships with prominent industry players such as Oracle, WSO2 and Salesforce, among others. Post-implementation, the group also provides ongoing support, including maintenance, system upgrades and training for clients’ employees.
Vetece’s client base primarily encompasses players in the telecommunications and financial services industries. Major clients include Telekom Malaysia Bhd, Telstra Corporation Ltd in Australia and leading banks in Malaysia. These industries contributed approximately 71% of the group’s revenue in the financial year ended Aug 31, 2023.
In the past, Vetece has also provided enterprise IT solutions to large enterprises, government-linked companies and multinational corporations across diverse industries such as technology, manufacturing, higher education, distribution, the public sector, automotive and utilities.
Vetece is expected to be listed by the third quarter of 2024, with Kenanga IB as the principal adviser, sponsor, underwriter and placement agent for the IPO.
Vetece group CEO and executive director Chan Wai Hoong said this IPO exercise will fuel its expansion and secure the capital needed for future growth.
“By accessing the equity market, we aim to enhance our financial flexibility and capitalise on attractive market opportunities ahead, particularly in leveraging AI for data handling and analytics solutions.
“The IPO proceeds will be mainly utilised to roll out new core products and services, strengthen our Singapore operations, establish a Centre of Excellence for software solutions, facilitate the purchase and renewal of hardware and software licensing fees and repayment of loans,” Chan added.