This article first appeared in Capital, The Edge Malaysia Weekly on March 9, 2026 - March 15, 2026

ACE Market-bound IT infrastructure solutions specialist OGX Group Bhd (KL:OGX) is set to make its debut on Bursa Malaysia this Thursday (March 12).

Excluding LEAP Market listings, OGX will be the 10th company to list on the local bourse this year. It will be the ninth to list on the ACE Market.

It will be the first new listing on Bursa Malaysia since the beginning of the US-Israeli war on Iran on Feb 28. Investors will be watching how this might affect local appetite for initial public offerings (IPOs), with OGX likely to be the first test of market resilience.

The Shah Alam-based firm, which operates on a brand-centric model, is involved primarily in the provision of IT infrastructure solutions, distribution of IT infrastructure products and offering of product warranties and support services.

The company’s IPO comprises 150 million new shares and an offer for sale of 75 million shares at 35 sen each. OGX will receive RM52.5 million from the IPO and selling shareholders will collectively pocket RM26.25 million.

About two-thirds of the proceeds from the public issue of new shares will be allocated for expansion, including RM30 million for the acquisition of a new facility that will be OGX’s future headquarters.

OGX has also set aside RM2.5 million to broaden its portfolio of infrastructure brands and RM2 million for expansion in Sabah and Sarawak with new sales offices. The remaining RM18 million will go towards the repayment of bank borrowings, working capital requirements and listing expenses.

Founded in 2007 by current chairman Tan Ting Fong and a partner who exited in 2016, OGX has transformed from a niche distributor of IT infrastructure products into a full-fledged, end-to-end IT infrastructure solutions provider.

Tan stepped down from his executive role in 2020 and his son Tan Suan Loong now runs OGX as managing director. Post-listing, the Tan family will retain a stake of about 70% in the company.

The group offers customised end-to-end IT infrastructure solutions, which encompasses the design and implementation of the solutions tailored to an organisation’s operational requirements, and support services.

OGX’s core business focuses on providing IT infrastructure solutions in key segments of network solutions, cybersecurity solutions and enterprise data centre solutions.

Today, the group is an authorised distributor of 18 brand principals, enabling its system integrator (SI) customers to access top technologies. Notable brands in OGX’s portfolio include HPE-Aruba, Sangfor, Vertiv, Tenable, Forcepoint and NetScout.

OGX maintains an in-house team of more than 50 IT engineers who possess the technical expertise for designing and implementing IT infrastructure solutions, as well as providing support services for its SI customers.

Last Wednesday (March 4), OGX announced that its IPO had been oversubscribed by 10.11 times.

A total of 7,051 applications for 416.8 million shares were received from the public, representing a value of RM145.88 million, according to a notice from Vistra, formerly known as Tricor Investor & Issuing House Services Sdn Bhd.

The bumiputera portion attracted 3,887 applications for 199.5 million shares, translating into an oversubscription rate of 9.64 times, whereas the public portion recorded 3,164 applications for 217.3 million shares, representing an oversubscription rate of 10.59 times.

Meanwhile, the 75 million issue shares to institutional and selected investors via private placement have been fully placed out. Another 18.75 million shares and 75 million offer shares set aside for identified bumiputera investors approved by the Ministry of Investment, Trade and Industry have also been fully subscribed.

Upon listing, OGX is expected to have a market capitalisation of RM262.5 million. Currently, the company does not have a dividend policy.

UOB Kay Hian (M) Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.

OGX has delivered steady top-line growth over the past three financial years ended May 31, with revenue rising from RM120.2 million in FY2023 to RM172.5 million in FY2024 and RM176.3 million in FY2025.

Net profit jumped from RM3.7 million to RM8.1 million and further to RM15.3 million in those respective years, lifting earnings per share (EPS) from 0.49 sen to 2.04 sen over the same period.

At least four research houses have set target prices for OGX that are above its IPO price of 35 sen, implying upside potential ranging from the high teens to mid-40%.

RHB Research is the most bullish at 51 sen, suggesting about 46% upside, followed closely by Malacca Securities at 50 sen, or roughly 43% potential gains.

Apex Securities has a target of 46 sen, implying an upside of 31.5%, while PublicInvest Research is more conservative at 41 sen, but still pointing to 17% appreciation from the offer price.

RHB Research projects a three-year (FY2026 to FY2028) revenue compound annual growth rate (CAGR) of about 26%, anchored to 5MFY2026 annualised run-rate of around RM254 million, and backed by about RM70 million in confirmed purchase orders on hand, as well as an indicative sales pipeline of RM400 million to RM500 million.

Meanwhile, Malacca Securities believes OGX is in a sweet spot to benefit from the growing demand for cybersecurity as well as data centre infrastructure because of its long track record. It will also see a boost from additional demand from its expansion plan in East Malaysia.

“Moreover, we pencil in conservative margins of about 8.6%, given its flexibility in meeting a myriad of demands, thanks to its wide range of brand offerings,” its research analyst Muhammad Nabil wrote.

According to him, OGX’s expansion is key to meeting rising demand and strengthening its foothold in East Malaysia, including in Kota Kinabalu, Sabah, and Kuching, Sarawak.

“With these additional states expected to contribute meaningfully to earnings, the group is well positioned to capture the increasing need for IT infrastructure,” he added.

Apex Securities highlights that OGX’s closest listed peers on Bursa Malaysia include VSTECS Bhd (KL:VSTECS) and SNS Network Technology Bhd (KL:SNS), both of which operate as value-added information and communications technology (ICT) distributors serving enterprise and SI customers.

“Given the limited pure-play listed peers with an identical business model, we also include Infomina Bhd (KL:INFOM) and Cloudpoint Technology Bhd (KL:CLOUDPT) for benchmarking purposes, given their involvement in the design and implementation of IT infrastructure and cybersecurity solutions,” the research house said in its March 2 IPO note.

PublicInvest Research points out that Malaysia’s IT infrastructure solutions industry is competitive and fragmented, with players competing on pricing, brand recognition, quality of solution and after-sales support.

Moreover, moderate barriers to entry require firms to possess technical expertise and maintain continuous investment to stay relevant amid rapid technological change and evolving customer demands.

“OGX faces competition from better-resourced peers with broader offerings and more extensive market reach, which may pressure pricing and customer retention.

“Failure to adapt to technological advancements in a timely and cost-effective manner may result in solution obsolescence, customer loss and adverse financial performance,” the research team warned. 

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.