KUALA LUMPUR (Jan 14): OGX Group Bhd, an IT infrastructure solutions provider, has appointed UOB Kay Hian (M) Sdn Bhd as underwriter for its upcoming ACE Market initial public offering (IPO), which will involve 150 million new shares or 20% of its enlarged share capital.
The IPO timeline was not disclosed.
“Supported by long-term growth prospects, we believe that our IPO will further strengthen OGX’s competitive position and expand OGX Group’s capacity to pursue broader and more strategic opportunities in the years ahead,” OGX’s non-independent non-executive chairman Tan Ting Fong said in a statement.
Founded in 2007, OGX provides IT infrastructure solutions in networking, cybersecurity and data centres. It operates on a business-to-business model, mainly serving system integrators with end-to-end solutions, product warranties and support services.
The proposed IPO comprises a public issue of new shares and an offer for sale of 75 million existing shares, with the issue price to be determined later.
Of the 150 million new shares, 37.5 million will be allocated to the Malaysian public, 18.75 million reserved for eligible persons, and 75 million placed out to selected investors. The remaining 18.75 million shares will be placed out to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Proceeds from the IPO will be used to support business expansion, working capital requirements and the repayment of bank borrowings, as well as to strengthen the group’s IT distribution and solutions portfolio across Malaysia and Southeast Asia.
Proceeds from the offer for sale will accrue entirely to the selling shareholders — Ting Fong and managing director Tan Suan Loong.
Post-IPO, Ting Fong’s stake will be diluted to 35.7% from 51%, while Suan Loong’s shareholding will fall to 34.3% from 49%.
UOB Kay Hian is the principal adviser, sponsor, underwriter and placement agent for the IPO.