MULTIMEDIA video conferencing systems provider MLABS Systems Bhd, which is en route to a listing on the Mesdaq market, expects to increase its Malaysian market share from the current 15% to between 50% and 70% by the middle of next year.
Chairman Dr Sureswaran Ramadass said it would actively target local government agencies and government-linked companies to reach that target.
He predicted that the biggest user of MLabs' multipoint-to-multipoint video conferencing system in the next two years would be the local government sector.
He told StarBiz that 19% of MLabs' RM5.04mil revenue in the financial year ended Dec 31, 2004, was contributed by the local government sector business.
Sureswaran said after MLabs' prospectus launch in Kuala Lumpur yesterday that the company was now able to capitalise on its Multimedia Conferencing System software's potential because many local government agencies had implemented broadband services and networks.
He added that MLabs' customer base currently consisted of several large government bodies, including the Penang state government, Malacca state government, Meteorological Services Department and Multimedia Development Corp.
Chief executive officer Khairil Anuar Aziz said the centralisation of government bodies in Putrajaya would open up avenues for MLabs to strengthen its domestic market presence.
In conjunction with the proposed listing, MLabs is making a public issue of 26.15 million 10 sen shares at an issue price of 55 sen each.
This comprises 2 million shares for the public, 3.001 million shares for eligible directors, employees and business associates, and 21.15 million by way of private placement to identified placees.
The exercise will raise RM14.38mil to be utilised for capital expenditure (RM3.2mil), business expansion (RM1.5mil), working capital (RM2.273mil), repayment to creditors (RM2.4mil), research and development (RM2.41mil), listing expenses (RM1.8mil) and marketing and promotion expenses (RM800,000).
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