KUALA LUMPUR (Oct 7): Enterprise IT services provider Ancile Tech Bhd has filed its draft prospectus for an initial public offering (IPO) on the ACE Market, as it seeks funds to set up an in-house network operations centre (NOC) and security operations centre (SOC), and expand its business beyond northern Peninsular Malaysia.

The Penang-based group plans to use part of the IPO proceeds to procure and implement technology infrastructure for the NOC and SOC, which will provide round-the-clock network monitoring and cybersecurity services to enterprise customers, according to its draft prospectus.    
 
Ancile Tech also plans to use the proceeds to expand its workforce and office space in the northern region, establish branch offices in Petaling Jaya and Johor Bahru, and invest in new solutions and services including artificial intelligence, automation and green IT.

Proceeds are also earmarked for the repayment of bank borrowings, working capital and listing expenses, although the amounts have yet to be determined as the IPO price has not been fixed.

Ancile Tech principally provides the design, implementation and deployment of enterprise IT solutions, covering network, server and storage infrastructure, cybersecurity, cloud infrastructure and enterprise data centres.
 
The group also provides maintenance and support services, and supplies IT hardware and software.

Its customers include multinational corporations, government agencies and local companies across industries such as manufacturing, business process outsourcing and IT.

Clients from the manufacturing sector accounted for 72.48% of revenue in the financial year ended Dec 31, 2025 (FY2025).

Under the proposed IPO, Ancile Tech will issue 82.5 million new shares, representing 20% of its enlarged share capital, and offer for sale 41.25 million existing shares, bringing the total offering to 123.75 million shares.    

Ancile Tech's enlarged share capital will comprise 412.5 million shares upon completion of the IPO, compared with 330 million shares currently.
 
Of the new shares, 20.63 million, or 5% of the enlarged share capital, will be offered to the Malaysian public, while 10.31 million shares, or 2.5%, will be allocated to eligible directors, employees and persons who have contributed to the group.

Another 51.56 million new shares, equivalent to 12.5% of the enlarged share capital, will be placed out to selected investors.

Meanwhile, the 41.25 million existing shares on offer will be sold by managing director and promoter Teoh Beng Hoe through a private placement to selected investors, with the proceeds going entirely to him.

Teoh, who owns 75% of Ancile Tech before the IPO, will see his stake reduced to 50% after selling the shares and following the issuance of the new shares.    
 
He is also deemed interested in a further 20% stake held by Jencorp Capital Sdn Bhd, of which he is the sole shareholder, giving him a total direct and indirect interest of 70% following the IPO.

The group’s business began with its subsidiary Ancile Sdn Bhd, which was incorporated in 2009 as an IT hardware accessories trader before venturing into enterprise IT infrastructure solutions after Teoh took over its management in 2013.
 
The group recorded a net profit of RM6.12 million for the financial year ended Dec 31, 2025 (FY2025), up 75.5% from RM3.48 million in FY2024, while revenue was broadly flat at RM44.39 million compared with RM44.17 million.

Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.