KUALA LUMPUR (Nov 25): SBS Nexus Bhd, a branding and marketing services specialist, signed an agreement with M&A Securities to underwrite its listing on the ACE Market.
Under the agreement, M&A Securities will underwrite the shares set aside for the Malaysian public and eligible persons under the so-called pink form allocations in the initial public offering (IPO), SBS Nexus said in a statement on Tuesday.
“The signing of the underwriting agreement with M&A Securities not only reinforces their confidence in us but also takes us a step closer to our IPO journey to become an ACE Market public listed company,” said SBS Nexus chief executive officer Wong Chun Mun.
The target is to launch the IPO by the first quarter of 2026, according to an earlier statement from SBS Nexus. The IPO, which will be priced later, involves a public issue of new shares and an offer for sale of existing shares.
SBS Nexus is mainly engaged in both offline and digital branding services, including public relations and event management, as well as digital broadcasts, video production, mobile and web-based applications, and website development.
The company also organises business awards and networking events.
The listing comes at “an opportune time as we are ready to take advantage of the vast opportunities and vibrancy in the branding and marketing industry in Malaysia,” said Wong.
Funds to be raised from the sale of new shares have been earmarked for the setup of its new headquarters, hiring of new employees as part of its expansion into the Malay market, and marketing activities.
Proceeds from the sale of existing shares will go to chief operating officer Warren Cheng, head of digital Lai Kian Chuan and chief business officer Lim Cheng Yong.
Their combined stake will be diluted to 65% after listing.