Green Packet Bhd, which develops mobile broadband networking solutions, is confident of an impressive rise in profit this year, spurred by its expansion to China and growth of the South-East Asian market.
Group managing director and chief executive officer Puan Chan Cheong said Green Packet, which is scheduled to be listed on the Mesdaq market on May 25, would announce a major contract from a telecommunications company (telco) in Malaysia within the next two months.
“The collaboration with the telco on our solutions will enable us to gain greater market penetration in Malaysia and the South-East Asian region,” he said during the launch of the company's prospectus in Kuala Lumpur yesterday.
According to Puan, the telco already deployed Green Packet solutions and the contract will be awarded in the next one or two months.
Puan said revenue from South-East Asia contributed 1% to the group’s total revenue and the company expected this to increase to between 5% and 10% this year.
Green Packet was also looking at venturing into the Middle East by the year-end.
“We have participated in several exhibitions and road shows in the Middle East, where several parties have approached us for potential partnerships and business collaborations,” he said.
For the financial year ended Dec 31, 2004, Green Packet’s profit after tax rose to RM11.914mil from RM2.931mil in the previous year.
Puan attributed this to the company’s aggressive expansion into China, saying that this year it targeted to penetrate four or five more Chinese provinces.
Revenue from China accounted for 86% of Green Packet’s overall revenue with the remainder coming from the United States and Malaysia.
Its listing exercise is expected to raise gross proceeds of RM39.325mil, the bulk of which will be used to expand the company's core and related business activities (RM19.29mil) and as working capital (RM7.77mil).
Green Packet is making an initial public offering of 71.5 million 10 sen shares at an issue price of 55 sen per share.
A Multimedia Super Corridor- (MSC) status company, Green Packet is backed by two local venture capital companies, OSK Technology Ventures Bhd and Kumpulan Modal Perdana Sdn Bhd.
The company has its headquarters at Technology Park Malaysia, and offices in the United States, China and Taiwan. – Bernama