KUALA LUMPUR (Feb 11): Tune Talk Sdn Bhd said on Wednesday it is establishing an employee share trust scheme (ESTS), as the mobile virtual network operator works towards an initial public offering (IPO).
As part of the scheme, co-founder and chief executive officer Gurtaj Singh Padda has transferred 4.15% of Tune Talk’s issued share capital into a trust fund for employees, executed pursuant to a formal trust deed, the group said in a statement.
“As we move towards an IPO, we are deliberately putting structures in place that allow our employees to grow financially alongside the business, rather than being left behind once value is created,” said Gurtaj.
The shares placed into the trust will be held and managed by appointed trustees, reinforcing Tune Talk’s commitment to long-term stewardship and responsible value sharing, the group said.
“The ESTS has been established to create a flexible structure that enables employees to participate meaningfully in the value they help generate, including the distribution of dividends or performance-based rewards ahead of the IPO, and to provide financial support to employees’ welfare where necessary.
“Upon IPO, the trust will act as a vehicle to distribute the shares and subsidise beneficiaries in acquiring shares pursuant to the employee share option scheme framework,” it added.
Tune Talk is a pure prepaid mobile service provider, whose main target market is the lower- to middle-income group who want internet access without getting tied down to long-term contracts.
The company has moved most of its digital infrastructure into the cloud as it adopted infra-less model across the board to minimise capital expenditure. In an interview with The Edge in December 2024, Gurtaj said new capital will give the group “the freedom to do mergers and acquisitions” without going into details.
Ahead of the share transfer, Gurtaj is Tune Talk's largest shareholder with a 47.29% stake, followed by CelcomDigi Bhd's (KL:CDB) unit CelcomDigi Mobile Sdn Bhd (35%), Tune Strategic Investments Ltd (11.86%) and East Pacific Capital Pte Ltd (5.85%).
In the financial year ended Dec 31, 2024 (FY2024), Tune Talk's profit after tax came in at RM30.39 million, on revenue of RM434.17 million. Its FY2023 net profit was RM42.42 million, against RM440.71 million in revenue. The group had retained earnings of RM60.19 million.