Infomina seeks to raise RM32.5mil from IPO

Stepping forward (From left): Infomina executive directors Mohd Hoshairy Alias and Raymond Lim, managing director Yee, M&A Securities managing director of corporate finance Datuk Bill Tan, M&A head of corporate finance Gary Ting and Newfields Advisors chief executive officer Seow Lun Hoo at the launch of their prospectus.

PETALING JAYA: Technology solution provider Infomina Bhd is seeking to raise about RM32.5mil through its initial public offering (IPO) exercise on the ACE Market of Bursa Malaysia.

The proceeds have been earmarked for drive regional expansion, and for research and development (R&D) capabilities.

At its IPO prospectus launch yesterday, Infomina managing director Yee Chee Meng said RM5.53mil, or 17% of the proceeds, would be utilised for regional expansion, while RM7.6mil, or 23.4%, of it would be used to strengthen its R&D capabilities.

Apart from Malaysia, the group is present in Indonesia, Thailand, Singapore, the Philippines, Hong Kong, Taiwan and China. Infomina also intends to further strengthen its operations in these countries.

In its prospectus, Infomina noted: “We are planning to recruit additional sales and technical staff for our regional offices.

“We also aim to increase our competitiveness and enhance the comprehensiveness as well as the quality of our technology applications and infrastructure solutions.”

In line with the increasing demand for technology solutions, the group plans to strengthen its R&D capabilities to expand its technological application and infrastructure solutions.

Meanwhile, a big chunk of the proceeds, or 43% of it, equivalent to RM14mil, will be used for working capital for business operations.

Out of the RM14mil, about RM9mil will be used for project-related costs, including licensing and software, which are the largest costs of its sales.

Additionally, the group plans to use RM886,000, or 2.7% of the IPO proceeds, for branding, marketing and promotional activities, with the aim of increasing visibility and brand recognition.

The balance of RM4.5mil, or 13.9%, is for listing expenses.

Infomina has a RM443.6mil order book and RM370.3mil worth of completed projects as of Sept 30, 2022.

Speaking of the company going forard, Yee said: “The outlook is very positive for us to grow and expand as we have contracts which will last all the way to 2027.”

Group revenue has grown more than threefold from RM66mil in the financial year 2019 (FY19) to RM201.1mil in FY22, resulting in a compounded annual growth rate of 45%.

The groups IPO exercise will comprise the public issue of 81.168 million new ordinary shares.

Of this, 30.06 million shares will be offered to the Malaysian public and another 6.01 million shares offered to eligible directors and employees of the group.

On another note, 45.09 million new shares will be offered to bumiputra investors approved by the International Trade and Industry Ministry (Miti), via private placement.

The listing will also comprise an offer for sale of 81.168 million existing shares, of which 30.06 million will be offered via private placement to bumiputra investors approved by Miti, while the remaining 51.1 million shares will be sold via private placement to selected investors.

Infomina is due to be listed on Nov 25, 2022 with an IPO share price of 40 sen.

The company provides customised operations, maintenance and support services for technology solutions.

It is principally involved in the design and implementation of technology application and infrastructure solutions that support the fundamental business operations of its customers.

M&A Securities is the adviser, sponsor, underwriter and placement agent, while Newfields Advisors Sdn Bhd is the financial adviser for Infomina’s IPO exercise.

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