KUALA LUMPUR (Dec 23): Branding and marketing firm SBS Nexus Bhd is seeking to raise RM43 million from its listing on the ACE Market of Bursa Malaysia.
The initial public offering (IPO) was priced at 25 sen per share, according to the prospectus unveiled on Tuesday. Following the IPO, the company is expected to have a market capitalisation of RM122.5 million.
Applications for the IPO will close on Jan 7 and the group is scheduled for listing on Jan 20.
SBS Nexus is raising RM30.6 million from the public issue of new shares, proceeds have been earmarked for a new headquarters (23.2%) and to expand its business into the Malay-speaking small and medium enterprise market (23.7%) as the company currently caters to the Mandarin-speaking market.
Meanwhile, 19.6% of proceeds will be used to repay loans while the remainder will be used for marketing and promotional activities, working capital, and listing-related expenses.
“The wide range of service offerings provided by us catering to prevalent consumer trends and ever-changing market demand is expected to support the continued growth of the SBS Nexus group,” said managing director cum chief executive officer Wong Chun Mun during his speech at the launch of the prospectus.
SBS Nexus currently has six wholly owned subsidiaries and is principally involved in marketing and branding services such as content creation and digital billboard advertisement, among others.
Under the public issue of 122.5 milllion shares, 24.5 million new shares will be available to the Malaysian public and 17.15 million new shares will be made available for eligible persons.
In addition, 61.25 million new shares will be placed out to Bumiputera investors by way of private placement, while 19.6 million new shares will be for selected investors via private placement.
Proceeds from a separate offer for sale of 49 million existing shares worth RM12.25 million, representing a 10% stake, will go to chief operating officer Warren Cheng, head of digital Lai Kian Chuan and chief business officer Lim Cheng Yong.
Post-listing, Wong remains the largest shareholder with a reduced stake of 30%, from 40%, while executive director Elaine Piah Yee Ling’s will be the second largest shareholder with a 12% stake, down from 16%.
M&A Securities Sdn Bhd is the sole adviser, sponsor, underwriter and placement agent for the IPO.
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