KUALA LUMPUR (Aug 18): Sarawak-based water technology solutions provider Insights Analytics Bhd (IAB) has signed an underwriting agreement with M&A Securities Sdn Bhd to prepare for its initial public offering (IPO) on the ACE Market of Bursa Malaysia, targeted for the fourth quarter of the year.

The IPO involves a public issue of 121 million new ordinary shares, representing 22% of the company’s enlarged share capital and an offer for sale of 27.5 million existing shares, representing 5% of the enlarged issued share capital to eligible Bumiputera investors through private placement.

Of the 121 million new shares, 27.5 million new shares will be made available to the Malaysian public via balloting, while 11 million new shares will be offered to eligible directors, employees and other persons who have contributed to the group’s success under the pink form allocation.

Under the agreement, M&A Securities will underwrite all 38.5 million new shares that IAB has set aside for the Malaysian public and pink form allocations. M&A Securities is also the principal adviser, sponsor and placement agent for the IPO.

“The IPO exercise will enable the company to tap into the equity capital market to raise funds for business expansion, strengthen technological capabilities, and support working capital for ongoing and future projects,” said IAB managing director Frank Wee in a statement.

Of the remaining new shares, 41.25 million will be placed out to selected investors, while 41.25 million new shares have been set aside to be placed out to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.

IAB was established in May 2003 and undertakes water management across the water utility supply chain, from treatment to distribution, primarily in Sarawak. It 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.

In its statement, the group said it is well positioned to support Sarawak’s transformation journey given its strong track record of 20 years in delivering smart, data-driven solutions supporting Sarawak's large-scale infrastructure upgrades, utility digitalisation and comprehensive smart water initiatives.

“With 20 years of proven expertise in Sarawak’s water technology sector, IAB Group is well-positioned to capitalise on the Sarawak government’s Water Sector Transformation 2040 (WST 2040) agenda and Malaysia’s broader push towards smart city infrastructure," Wee said.

The WST 2040 roadmap focuses on the adoption and integration of Industry 4.0 water technologies, including data analytics and geographic information system for data-driven, efficient operations to boost long-term resilience in the water industry and enable smart city development.