KUALA LUMPUR (June 23): Branding and marketing solutions specialist SBS Nexus Bhd is planning an initial public offering on the ACE Market of Bursa Malaysia to raise funds for business expansion, including the setting up of a new headquarters, as well as to repay borrowings and for working capital.

According to its draft prospectus filed with Bursa Malaysia, the group's IPO will involve a public issue of 122.5 million new shares and an offer for sale of 49 million existing shares, representing a total of 171.5 million shares or 35% of the company’s enlarged issued share capital of 490 million shares.

Of the new shares, 24.5 million will be allocated to the Malaysian public, 17.15 million to eligible directors, employees, and persons who have contributed to the success of the group, 61.25 million to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), and 19.6 million to select investors through private placement.

The offer for sale of existing shares will be allocated to selected investors via private placement. Funds raised from this offer for sale will accrue entirely to shareholders of SBS Nexus, namely its managing director cum chief executive officer Wong Chun Mun, executive director Piah Yee Ling, executive director cum chief operating officer Warren Cheng, head of digital Lai Kian Chuan, chief business officer Lim Cheng Yong and Alphabets Assets — who hold a combined 100% stake in the company.

Post-listing, their combined shareholding will be reduced to a 65% stake.

SBS Nexus is primarily engaged in both offline and digital branding services. Its offline branding solutions comprise out-of-home media services, public relations and event management, as well as offline publications, while digital branding solutions include online marketing services, digital broadcasts, video production, mobile and web-based applications, and website development.

It also organises business awards and networking events as part of its marketing strategy to generate leads and provide platforms for its customers to drive branding and publicity.

The group saw its profit after tax (PAT) grow steadily over the last three years, as revenue rose. It made a PAT of RM7.6 million for the financial year ended Dec 31, 2024 (FY2024), up 37% from RM5.56 million in FY2023. In FY2022, it reported a PAT of RM1.58 million. Revenue jumped 50% to RM29.92 million in FY2024 from RM19.95 million in FY2023. Its FY2022 revenue stood at RM11.6 million.

In FY2024, digital branding solutions contributed 57.4% of its total revenue, followed by offline branding solutions, which accounted for 37.3%. Its business leads generation initiatives segment accounted for 5.3%. The company does not have any formal dividend policy.

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