KUALA LUMPUR (Oct 28): ICT Zone Asia Bhd (KL:ICTZONE) has filed for an initial public offering (IPO) as part of the information and communications technology (ICT) solutions provider’s listing transfer to the ACE Market from the LEAP Market.
The IPO involves a public issue of 133 million new shares and an offer for sale of up to 54.91 million existing shares, according to its draft prospectus filed with Bursa Malaysia on Monday.
The listing would offer investors a 23.62% stake at an undisclosed price in the company that has been listed on the LEAP Market since Dec 15, 2020. Its shareholders have approved the listing transfer following an extraordinary general meeting on June 21.
Principally involved in the provision of technology financing solutions, trading of ICT hardware and software, ICT services, and cloud solutions and services, ICT Zone's customer base comprises channel and strategic partners, private and public corporations, government-linked corporations and agencies, as well as retail customers.
For its financial year ended Jan 31, 2024, the company made a net profit of RM7.34 million on the back of RM114.43 million revenue. Gross profit margin was 17.26% while profit before tax margin was 7.84%
Under the proposed public issue that represents about 16.72% of its enlarged issue share, the company has set aside 39.77 million new shares for the public, 4.14 million shares for eligible persons, and 89.09 million shares through private placement to Bumiputera investors.
Proceeds from the public issue have been earmarked to purchase ICT hardware and software to expand its technology financing solutions business, as well as for sales and marketing expenses.
Proceeds from the offer for sale involving up to 6.9% of its enlarged share base, meanwhile, will accrue entirely to its selling shareholders, ICT Zone Holding Sdn Bhd, and co-founder and non-executive chairman Datuk Seri Ng Thien Phing, who collectively hold 72.85% in ICT Zone Asia now.
Ng is also the founder and executive chairman of Main Market-listed property group SkyWorld Development Bhd (KL:SKYWLD).
Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.