Theta Edge now says RM673.8 mil 'investment' for new IoT project is actually opex

Friday 13 Sep 2024

KUALA LUMPUR (July 12): Theta Edge Bhd (KL:THETA) is now saying that the RM673.8 million it planned to invest to develop Internet of Things (IoT) technology for a project for the Ampang Jaya Municipal Council (MPAJ) is actually the operating expenditure (opex) that is required for the project over a 20-year concession period.

"The company would like to clarify that the value of RM673.8 million refers to the operating expenditure required during the concession period for the development of IoT solutions for Smart Economy in Ampang Jaya and does not refer to the actual investment required for the project," it said in a Bursa Malaysia filing on Friday.

Theta Edge first announced on Tuesday that it had secured the project from MPAJ for the development, provision and maintenance of IoT for the council's smart business initiative in Ampang Jaya. In that filing, Theta Edge said "the value of the project is estimated at RM673.8 million for a concession period of 240 months commencing from July 15, 2024 until July 14, 2044."

When contacted by The Edge on Wednesday, the company clarified that the “project value” of RM673.8 million stated in its Tuesday filing was operating expenditure it would incur for the project over the course of 20 years, and not the value of the project.

But on Thursday, Theta Edge issued a press release and said the RM673.8 million was the sum it would be investing in the project. In that statement, Theta Edge also said it would arrange the project's financing with local financial institutions, and that MPAJ as a statutory body would facilitate the licensing requirements and digitalisation processes of council administration through revenue sharing.

In short, Theta Edge had referred to the RM673.8 million first as value of the project, then opex, then investment cost, and now opex again. So, the project's actual value has not been disclosed.

After announcing the project, Theta Edge’s share price rose as much as 10% or 18 sen to an intra-day high of RM1.92.

The counter later pared some of its gains and settled at RM1.88 on Friday, with a market capitalisation of RM221.78 million. Year-to-date, the company’s share price has jumped 172.46% or RM1.19.

Lembaga Tabung Haji is the largest shareholder in Theta Edge with a 27.28% stake, followed by Threadstone Capital Sdn Bhd (13.56%), Inter Pacific (9.4%), and REDtone Digital Bhd (KL:REDTONE).

Edited ByTan Choe Choe

Text Size