KUALA LUMPUR (March 12): IT solutions firm OGX Group Bhd (KL:OGX) said its business operations have not been affected by ongoing geopolitical tensions in the Middle East, even as the broader market sentiment could still influence its share price in the near term.

Speaking to reporters after its listing on the ACE Market, OGX Group managing director Tan Suan Loong said the group has so far not seen any disruption arising from the conflict, noting that the situation remains geographically distant from the company’s domestic positioning.

“While the share price may be affected in the near term by broader market conditions and geopolitical market developments, we believe these are temporary factors,” said Tan.

Its debut comes at a time when markets in Asia are seeing ripple effects from the war in the Middle East as signs of easing are far in sight, which adds further pressure on investors and the overall market.

Tan added that the group’s business — which focuses on enterprise digital infrastructure solutions — continues to be supported by demand for digitalisation, which he said remains a necessity for many organisations despite external uncertainties.

On Thursday morning, the group made its debut on the ACE Market and saw its share price fall by 20% as it opened at 28 sen versus its initial public offering (IPO) price of 35 sen.

UOB Kay Hian director of corporate finance Tan Heng Hooi, who is the IPO’s sponsor, said demand for digital infrastructure remains structural rather than cyclical, suggesting geopolitical tensions are unlikely to significantly alter the company’s growth trajectory.

Proceeds from the IPO will go towards the acquisition of a new facility in Subang Jaya or Shah Alam. Beyond Peninsular Malaysia, OGX is seeking to grow its presence in East Malaysia, particularly in Sabah, where it has secured projects in sectors including policing and education. The group is looking to open its new office in mid-2027.

Tan said the group also plans to develop a security operations centre to strengthen recurring income streams while continuing to pursue opportunities linked to enterprise data centres and rising artificial intelligence (AI) adoption.

Other expansion plans include diversifying its brand portfolio, Tan noted that discussions are underway to add several international technology brands from the US, Europe and China within the next six to 12 months, though he did not disclose any brand names due to non-disclosure agreements.

He stated that as of latest practicable date, the order book stands at RM72 million, which consists of purchase orders for the provision of IT infrastructure solutions and distribution of IT infrastructure products.

For the financial year ended May 31, 2025, OGX Group posted a net profit of RM15.31 million with revenue of RM176.31 million.

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