EB Capital Bhd will undertake a public issue of 3.706 million 10 sen shares at an issue price of 88 sen per share in conjunction with its listing on the Mesdaq market.
The initial public offering (IPO) entails 1.506 million shares for public subscription and 2.2 million shares for private placement.
The company, which provides wireless broadband services, will issue its prospectus in early June and expects to be listed later in the same month.
Despite the current sluggish market conditions, managing director Dr Lee Kuok Wei said he hoped the response to the IPO would be good as the company was fundamentally strong.
He told reporters this after the signing of an underwriting agreement with managing underwriter Aseambankers Malaysia Bhd and co-underwriters Mercury Securities Sdn Bhd and PM Securities Sdn Bhd in Kuala Lumpur yesterday.
eB Capital is the holding company of eB Technologies (M) Sdn Bhd, a Multimedia Super Corridor- status company licensed by the Malaysian Communications and Multimedia Commission (MCMC) to provide wireless broadband Internet access.
This wholly-owned unit currently holds the individual network facilities provider and network services provider licences issued by MCMC.
Lee said the company, which started business in 2001, now had more than 50 base stations throughout Peninsular Malaysia servicing over 100 broadband-ready buildings and 1,000 broadband subscribers, and hoped to increase them substantially over the next two to three years.
The bulk of the RM3.26mil proceeds arising from the IPO will be used to purchase network equipment and for working capital.
Lee said eB Capital aimed to be a market player in providing quality wireless broadband services in the country and the South-East Asian region within the next five years.
With a current local market share of 0.54% in terms of broadband subscription, more efforts would be devoted to marketing its products and services to enlarge its share, he added.
Meanwhile, eB Capital's historical earnings demonstrate its strong growth.
The company registered a pre-tax profit of over RM1mil last year and an after-tax profit of RM560,000.
Revenue increased to RM8.3mil in 2004 from RM2.5mil in the preceding year.
Lee said eB Capital currently had two contracts in hand - one each from the government and the the private sector - to keep it busy over the next five years. – Bernama