Sub-sea cable firm OMSG mulls RM1.34bil IPO

At RM1.34bil, the initial public offering would be Malaysia’s biggest in over a year, after MR DIY Group Bhd’s RM1.62bil listing in October 2020, according to data compiled by Bloomberg.

SINGAPORE: OMS Group Sdn Bhd (OMSG), a company that installs cable underwater, is weighing a listing in Kuala Lumpur next year that could raise RM1.34bil, according to sources.

The company is working with financial advisers on the planned first-time share sale, said the sources.

It is seeking a valuation of over RM4.45bil based on strong earnings growth and increased spending among telecommunications operators on digital infrastructure, the sources said.

OMSG had asked banks to submit proposals for the potential first-time share sale and was considering venues including Australia, Hong Kong, Malaysia and Singapore for a listing, Bloomberg News reported in October.

At RM1.34bil, the initial public offering would be Malaysia’s biggest in over a year, after MR DIY Group Bhd’s RM1.62bil listing in October 2020, according to data compiled by Bloomberg.

Deliberations are ongoing and the size as well as timing of the IPO could still change, the sources said.

OMSG is exploring an IPO in the region, a company representative said in a statement responding to a query from Bloomberg News.

Following the company’s recent private funding rounds, there has been continued interest from investors, according to the statement. Technology and telecommunications firms are spending on ambitious undersea projects in Asia as increasing digitalisation in the region sparks demand for infrastructure.

OMS Group, with offices in Malaysia, Singapore and Indonesia, has done sub-sea cable installation and maintenance projects for the past three decades, including the Papua New Guinea national submarine fibre cable network and the South-East Japan Asia Japan cable system two, according to its website. — Bloomberg