KUALA LUMPUR (Oct 8): SRKK AI Bhd, an information technology services firm, is seeking to raise funds for its expansion into artificial intelligence (AI) and list on the ACE Market.

The plan involves setting up a laboratory to test products and services as well as establishing an academy offering courses related to AI, according to its draft prospectus. The company is also looking to develop its own data analytics and business intelligence solutions with AI capabilities.

“… we recognise a need amongst corporations and government-linked corporations to understand how their operational activities can be modernised with such solutions,” SRKK AI said. “We thus intend to capitalise on this opportunity to provide IT advisory and consulting services.”

Based in Klang, SRKK mainly provides consultation, project implementation and managed services to corporations, government-linked companies, resellers and other service providers in Malaysia and Singapore.

Last year, the company made a net profit of RM5.8 million on revenue of RM94.5 million. About half of its revenue came from recurring income such as subscription fees for use of cloud services, fees on service contracts and rental of hardware and software.

Further, the company is planning to set up an advisory and consulting office in Indonesia and build a security operations centre that monitors, analyses and protects a network from cyberthreats and attacks.

To support the various expansions, the company is hiring more than five dozen staff and setting aside some of the proceeds from the initial public offering (IPO) for branding, marketing and promotional activities.

Meanwhile, the IPO will also see a group of 15 shareholders, including chief executive officer Yew Lip Sin, cashing a small part of their stake in SRKK in the IPO through a sale of existing shares by Joel Resources Sdn Bhd and Five Loaves Sdn Bhd.

TA Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.