The majority of the proceeds raised from the initial public offering (IPO) would be used to enhance the group’s capabilities and to strengthen its market position to capture the growing market demand for IT solutions.
PETALING JAYA: Infoline Tec Group Bhd
, an information technology (IT) infrastructure and cybersecurity solution provider, aims to raise RM23.68mil from its ACE Market listing on July 13.
The majority of the proceeds raised from the initial public offering (IPO) would be used to enhance the group’s capabilities and to strengthen its market position to capture the growing market demand for IT solutions.
“Most of the IPO proceeds will be used to upgrade the group’s hardware and software IT infrastructures.
“A total of 70% or RM17.46mil of the proceeds will be allocated to enhance the group’s existing network operation centre and for the setting up a security operations centre, technology centre and disaster recovery centre,” the group said in a statement yesterday.
Based on an issue price of 32 sen per share and with an enlarged share capital of 363.2 million shares, Infoline Tec will have a market capitalisation of RM116.2mil upon listing.
The group has set to distribute up to 30% of its annual profit after tax attributable to shareholders as dividends to shareholders.
The group chief marketing officer Too Yit Meng cited an independent market research that the outlook of the IT infrastructure and cybersecurity was promising at 9% compound annual growth rate.
Group chief operating officer Loo Wai Hong said the group would generate more marketing and collaboration opportunities through the positive industry outlook.
Infoline Tec’s IPO comprises a public issuance of 74 million new shares, representing 20.38% of the enlarged shares, as well as an offer for sale of 22.25 million existing shares, representing 6.12% of the enlarged shares by way of private placement to selected investors.A total of 18.16 million new shares or 5% of the enlarged shares would be made available to the public via balloting, of which at least 9.08 million new shares, representing 1% of the enlarged shares would be set aside for bumiputra investors.
New shares amounting 8.27 million or 2.28% of the enlarged shares would be made available for application by the eligible directors, employees, and persons who have contributed to the success of Infoline Tec and its subsidiaries (pink form allocations).
A total of 2.17 million or 0.6% of new shares of the enlarged shares would be made available by way of private placement to selected investors. Lastly, 45.4 million or 12.5% of new shares of the enlarged shares would be made available by way of private placement to identified bumiputra investors approved by the Ministry of International Trade and Industry.Applications for the public issue opened yesterday until June 28.
MIDF Amanah Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.
