KUALA LUMPUR (Oct 7): MM Computer Systems Bhd, an information technology services firm, is filing for a listing on the ACE Market to raise funds for procurement and expansion.

The company is eyeing higher-value contracts, as well as expanding its product and services offerings in line with the latest technological trend, according to its draft prospectus. The scale and scope of such projects require significantly higher upfront purchases of hardware and software, it noted.

“In addition, these projects typically require us to commit substantial working capital at the initial stage, including the fulfilment of tender requirements, procurement of hardware and software, as well as mobilisation of technical expertise,” MM Computer said.

Based in Kuala Lumpur, MM Computer designs and implements computer infrastructure and networking, as well as cybersecurity solutions. The company also provides maintenance and technical support services, as well as sell and lease out hardware and software.

MM Computer — which mainly serves government-linked companies, corporations, and resellers — has 120 ongoing contracts with a total unrecognised revenue of RM76.55 million. Last year, the company made a net profit of RM8.7 million, on revenue of RM73.7 million.

The proposed initial public offering (IPO), at a price to be determined later, will also raise funds for expansion of its workforce, including a sales director and 10 technicians, and enrol its staff in training courses. Proceeds will also go towards the repayment of bank borrowings and defraying of listing expenses.

The IPO will also raise some money directly for chief executive officer Young Yoong Chang, executive director Lee Choon Weng, and head of business development Quah Soo Keat, who are placing part of their existing shares for sale.

Malacca Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO, while SCS Global Advisory is the corporate finance advisor.