Landmark Dubai listing


Stanton’s planned flotation by end-October a first for Malaysian firm

KUALA LUMPUR: Penang-based Stanton Technologies Sdn Bhd is likely to be the first Malaysian company to list on the Dubai International Financial Exchange (DIFX). 

The flotation is expected by end-October and the book-building exercise for the sale of shares to institutional investors is expected to begin as early as next week. 

The final pricing of the shares is likely to be decided upon closure of the book. Stanton hopes to raise up to US$250mil selling shares equivalent to a 25% stake in the company. 

Stanton, an MSC-status company, has the software solution for mobile TV and Internet Protocol Television (IPTV). It also distributes computer and mobile communications-related products in western Europe via its distribution networks in Denmark, Germany, Lithuania and Switzerland. 

Stanton executive chairman Alan Rajendram said that DIFX was chosen over other exchanges because it allowed the company to raise the amount of funds it needed. 

“We also have Middle Eastern partners and have signed up with two other Middle Eastern telcos for the provision of our services. That is why we are focusing on that region,” he said. 

He said the lead manager for the initial public offering was Dubai-based Shuaa Capital psc while Kenanga Investment Bank Bhd was the Malaysian coordinator. 

Rajendram, an accountant, and his partner and Stanton executive director Bryann Pillay jointly own 40% stake in the company. 

United Arab Emirates (UAE) investor Sheikh Sultan Khalid Sultan Al Qassimi has a 5% equity interest and is chairman of Stanton. A statement from Stanton said Sheikh Sultan helms Gulf Holdings, a company that promotes UAE and its infrastructure worldwide. 

As 25% of the equity was for sale, the remaining 30% was held by Malaysian individuals and the company’s employees, Rajendram said. 

Mobile TV on handsets is gaining popularity in some parts of the world as is IPTV. In Malaysia, Stanton has arrangements with at least two cellular companies, and also with an eastern European telco, for the provision of its mobile TV solutions. 

“With mobile TV or IPTV, you get to see what you want, when you want it and even while on the move, be it from your handset or other devices,” Pillay said. 

Proceeds from the share sale, Stanton said, would be used to strengthen the research and development capabilities for new applications and products.  

It would also be used for global expansion into emerging markets such as South-East Asia and eastern Europe where broadband infrastructure build-up is under way. 

The statement said Stanton’s solutions allowed for media content delivery, either audio or video, to mobile phones and devices via the mobile connectivity of Edge, 3G, HDPA, WiFi and WiMax. 

It added that the company had signed contracts valued at US$350mil with two telcos and that Stanton was in the advanced stage of talks on another contract worth US$450mil. No details on the telcos were given. 

“Stanton is on track to reporting a net profit of US$20mil for this year as contribution from our units from Europe would be greater.  

Last year, Stanton reported US$2.3mil in net profit,” Rajendram said.

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