KUALA LUMPUR (Sept 28): ICT solutions provider RedPlanet Bhd is seeing stronger demand from the utilities sector and has received new enquiries from customers in the Middle East, even as geopolitical uncertainty persists in the region.
Managing director Lian Wah Seng told reporters that demand for the company’s services has been strong and is expected to increase further, citing expectations of higher electricity utilisation over the next three to five years by one of its major customers.
“So, what's happening is our Customer A is actually expanding again now because I think, as we know today, the utilities sector, the electricity sector is undergoing extraordinary growth and that has put them back again to start spending again,” Lian said at a press conference after the launch of RedPlanet’s prospectus on Monday.
WATCH: RedPlanet sees stronger utilities demand
According to the prospectus, Customer A is a Main Market-listed Malaysian electricity utility company principally engaged in the generation, transmission, distribution and retail of electricity across Peninsular Malaysia, Sabah and Labuan. It contributed 42.92% of RedPlanet’s revenue for the financial year ended June 30, 2025 (FY2025).
RedPlanet is principally engaged in providing geospatial solutions and intelligent rail solutions, as well as trading ICT solutions and ancillary hardware. It provides turnkey solutions to customers in the utilities and railway sectors.
WATCH: No disruptions to Middle East projects so far, says RedPlanet
The company’s turnkey solutions have also attracted enquiries from the Middle East, non-independent executive director Panjetty Kumaradevan Senthil Kumar said, although he did not provide details on any potential contracts.
Senthil Kumar said RedPlanet has not seen disruptions to its projects in the region so far despite ongoing geopolitical tensions. He said the company’s work there is tied to infrastructure development and that conditions have been “fairly contained”, while acknowledging that the outlook remains uncertain.
“I think from our standpoint, it's business as usual. Of course, we are cautious and look forward to what is happening over there,” he said at the press conference following the launch of the company’s initial public offering (IPO). For FY2025, Saudi Arabia contributed 3.44% to revenue and the United Arab Emirates 0.03%.
On the railway sector, Lian said project activity is higher than in previous years, citing the budgeted extension of the LRT3 line by five stations, a line in Penang and the renewal of existing rail projects.
He said the increased activity has addressed concerns over project delays among the company’s rail-sector customers.
According to the prospectus, Customer D is a government-owned entity established by the Ministry of Finance to own the assets of multi-modal public transport operators in Malaysia. It is also the owner-operator of rail services in Malaysia, including the LRT networks, KL Monorail and MRT lines. Customer D contributed 18.2% of RedPlanet’s revenue in FY2025.
Lian said RedPlanet’s current tender book stands at RM132.05 million.
He added that proceeds from the IPO will enable the company to bid for larger contracts, which typically require a 5% performance bond and project financing. Previously, the company had tendered for fewer projects to avoid overextending itself financially.
RedPlanet has allocated RM8.12 million of the IPO proceeds for business expansion.
Applications for the IPO will close on Oct 8, with the company scheduled to be listed on the ACE Market on Oct 22 at an IPO price of 19 sen per share.
At the IPO price, RedPlanet is expected to have a market capitalisation of RM78.02 million upon listing.