KUALA LUMPUR (Aug 28): OGX Group Bhd, an IT infrastructure solutions provider, is planning to raise capital through an initial public offering (IPO) on the ACE Market of Bursa Malaysia.

Proceeds from the IPO will be used to support the company’s business expansion, working capital requirements and repayment of bank borrowings, alongside strengthening its IT distribution and solutions portfolio across Malaysia and Southeast Asia, said OGX in its draft prospectus filed with Bursa Malaysia.

OGX carries and distributes IT hardware and software from 17 international brands, including HPE-Aruba, Sangfor, Vertiv and Tenable, catering primarily to system integrators serving government, enterprise and telecommunications customers.

The draft prospectus noted that the IPO comprises a public issue of 150 million new shares representing 20% of the company's enlarged share capital and an offer for sale of 75 million existing shares at a price to be determined later.

Proceeds from the offer for sale via private placement will accrue entirely to the selling shareholders — non-executive chairman Tan Tin Fong and managing director Tan Suan Loong.

Post-IPO, Ting Fong’s stake will be diluted to 35.7% from 51% currently, while Suan Loong’s holding will fall to 34.3% from 49%.

Of the 150 million new shares, 37.5 million will be made available to the Malaysian public, 18.75 million reserved for eligible persons and 75 million placed out to selected investors. The remaining 18.75 million will be placed out to Bumiputera investors approved by the Investment, Trade and Industry Ministry.

For the financial year ended May 31, 2024, OGX recorded a net profit of RM8.07 million on the back of RM172.47 million in revenue. For the nine months ended Feb 29, 2025, it posted a net profit of RM12.77 million on the back of RM133.41 million revenue, mainly driven by the stronger demand for IT infrastructure upgrades.

UOB Kay Hian (M) Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.