KUALA LUMPUR (Feb 10): Insights Analytics Bhd (IAB), a water technology solution provider, on Monday filed for an initial public offering (IPO) on the ACE Market to raise funds to expand its offices and operations, as well as for its working capital.

The proposed IPO involves a public issue of 121 million new shares and an offer for sale of 27.5 million existing shares at a price to be determined later, according to the draft prospectus filed with Bursa Malaysia. All in all, the listing will offer investors up to a 22% stake in the company.

Sarawak-based IAB was established in May 2003 and undertakes water management across the supply chain from treatment to distribution. IAB also supplies intelligent asset management solutions for customers in other industries such as hospitality, transportation and construction.

The company’s water technology solutions customers mainly comprise water agencies in Sarawak, including the Sarawak Rural Water Supply Department (JBALB), Sibu Water Board, Laku Management Sdn Bhd and the Kuching Water Board.

For its financial year ended April 30, 2024, the company made a net profit of RM6.9 million on the back of RM31.95 million revenue. Gross profit margin was 40% while profit before tax margin was 30.3%.

Under the proposed public issue, the company will set aside 16.25 million new shares for the public, 19.5 million shares for eligible persons and 42.25 million shares for selected investors through private placement.

Proceeds from the public issue will mainly be used for the expansion of a corporate office in Sarawak with a mini data centre, expansion of the current branch office in Selangor, and for the expansion of its information technology operations through the recruitment of new employees.

Meanwhile, proceeds from the offer for sale will accrue entirely to its group of shareholders, namely IAB managing director Wee Khiam Hui, executive director Bong Joon Fook and chief operating officer Charlene Bong Myn Ee. Post-IPO, Wee’s stake will dilute to 37.2%, while Joon Fook’s holdings will fall to 17.5% and Myn Ee’s to 18.3%.

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