KUALA LUMPUR (May 11): MM Computer Systems Bhd (MMCS), an information technology services firm, has begun accepting applications for its initial public offering (IPO) on the ACE Market of Bursa Malaysia to raise money for business expansion, technology upgrades, and debt reduction.
Priced at 22 sen per share, the group aims to raise as much as RM36.60 million from the issuance of 119 million shares and an offer for sale of 47.34 million shares from selling shareholders. Overall, the group is offering up to a 29.34% stake in the company to the public.
Head of business development Quah Soo Keat said growing demand for digitalisation, cybersecurity, and AI is increasing the need for its services. It positions itself as an “AI infrastructure enabler”, meaning it helps build and manage the IT systems needed for companies to run AI and other advanced technologies.
“Enterprise IT environments are becoming increasingly complex, distributed and security-sensitive. As enterprise digitalisation and cybersecurity requirements continue to evolve, we believe MMCS is well-positioned to support increasingly sophisticated IT environments across both the public and private sectors,” managing director and chief executive officer Young Yoong Chang said during the prospectus launch on Monday.
Based in Kuala Lumpur, MMCS designs and implements IT infrastructure and networking solutions such as servers, data centres, cloud systems, and networks, tailored to customer needs. It also offers cybersecurity solutions to protect systems from cyber threats, including firewalls, malware protection, and secure networks.
In addition, it provides IT outsourcing services like system maintenance, technical support, and help desk services, often with on-site engineers and 24-hour support. The company also sells and leases IT hardware and software such as laptops, servers, and networking equipment, either for short-term use or long-term ownership.
The group currently has 105 ongoing contracts with total unrecognised revenue of RM80.83 million. It is also currently participating in various tenders with an aggregated estimated tender sum of RM127.13 million. For the financial year ended Dec 31, 2025, MMCS posted a net profit of RM10.12 million on revenue of RM98.68 million.
Of the RM26.18 million expected to be raised from the issuance of new shares, the company plans to allocate the bulk towards procuring IT hardware and software, expanding its workforce, repaying bank borrowings and covering listing expenses.
Meanwhile, the remaining RM10.42 million from the offer-for-sale portion will go to selling shareholders, namely Young, executive director Lee Choon Weng and Quah.
Upon listing, MMCS is expected to command a market capitalisation of RM124.74 million, valuing the company at about 12 times earnings in FY2025. The company has a dividend policy of 20% for every financial year. Application for the IPO will close on May 25, with the company's expected listing date on June 11.
Malacca Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO, while SCS Global Advisory is the corporate finance adviser.