KUALA LUMPUR (Aug 16): Enterprise software firm Vetece Holdings Bhd has generated positive investor interest for its initial public offering, which has been oversubscribed by 187.41 times ahead of its listing on the ACE Market. 

The group’s IPO entails an offering of 137.2 million ordinary shares, featuring a public issue of 98 million new ordinary shares. A total of 3.7 billion issue shares with a value of RM923.23 million were received from the Malaysian public for 19.6 million issue shares.

Of this, a total of 1.6 billion issue shares were received for the Bumiputera portion while for the remaining Malaysian public portion, a total of 2.1 billion issue shares were received.

In a press statement, its executive vice chairman Vernon Tee Chee Chiang said, "The strong response to our IPO underscores investor confidence in Vetece’s growth prospects." 

"We are seeing an overwhelming response for Vetece’s IPO, with the market showing strong confidence in the company’s growth," Kenanga Investment Bank executive director Datuk Roslan Hj Tik added.

The IPO, priced at 25 sen per share, involves a public issue of 98 million new shares and an offer for sale of 39.2 million existing shares, according to the official prospectus.

The 68.6 million issue shares and 39.2 million offer shares by way of private placement to selected investors have also been fully placed out.

Listing is scheduled for Aug 28, 2024 and notice of allotment will be posted to all successful applicants by August 26.

Vetece mainly provides software for businesses, including implementation, maintenance, support and professional services as well as resale of hardware and software. The company’s clients are mostly in the telecommunications and financial services industries.

Telekom Malaysia Bhd (KL:TM) is the single-largest client for Vetece, accounting for more than half of its revenue so far this year. The company also counts Telstra Corp Ltd in Australia and banks in Malaysia as its clients.

Kenanga Investment Bank is the principal adviser, sponsor, underwriter and placement agent for the IPO.