From left: Vetece Holdings Bhd executive director and CEO Chan Wai Hoong, non-independent executive vice chairman Vernon Tee Chee Chiang, independent non-executive chairman Thomas Chew Hock Hin and Kenanga Investment Bank Bhd executive director, head of group investment banking and Islamic banking Datuk Roslan Tik.
KUALA LUMPUR: Vetece Holdings Bhd aims to raise RM24.5 million from its initial public offering (IPO) en route to a listing on Bursa Malaysia’s ACE Market on Aug 28.
Vetece is an enterprise information technology (IT) solutions provider with a portfolio that includes application integration and single sign-on management, data engineering and analytics, customer relationship management, software testing, and both on-premise and cloud infrastructure.
Executive director and chief executive officer Chan Wai Hoong said the listing on the ACE Market would unlock new opportunities to accelerate the company’s growth plans and capitalise on the increasing opportunities within the fast-paced and rapidly advancing industry.
"We plan to expand our enterprise IT solutions portfolio with artificial intelligence (AI) technology, as there is a growing demand for companies like us to implement AI solutions. AI is the future and I believe it will be crucial in the next five to ten years,” he told a press conference in conjunction with the prospectus launch today.
Chan also mentioned plans to continuously strengthen the company’s enterprise application integration and enterprise data engineering and analytics solutions.
"At the same time, we aim to establish a centre of excellence (COE) for software solutions to expand our capabilities for handling projects from international clients outside of Malaysia,” he added.
Based on a statement following the launch, the group will allocate RM2.2 million or nine per cent of the total proceeds to introduce AI-driven data handling and analytic solutions to complement its existing enterprise IT solutions offerings, and RM3.3 million or 13.4 per cent will be utilised to strengthen its Singapore operations, leveraging the country’s role as a gateway to the Asia Pacific region.
Vetece said that to further expand its geographical footprint, RM3.8 million or 15.5 per cent is earmarked to establish COE, which will allow the group to remotely execute overseas projects from Malaysia, ensuring data security, cost-efficiency and serving as a demonstration centre to showcase its enterprise IT solutions.
Meanwhile, it said RM6.5 million or 26.6 per cent will be used for hardware and software licencing fees, RM4.0 million or 16.3 per cent for loan repayments, and RM4.7 million or 19.2 per cent for IPO-related expenses.
"The group’s IPO exercise comprises a public issuance of 98.0 million new ordinary shares, representing 25 per cent of its enlarged share capital, as well as an offer for sale of 39.2 million existing shares, or 10 per cent of the enlarged share capital by way of private placement to selected investors.
"Out of the 98.0 million new shares, 19.6 million new shares will be made available to the Malaysian public via balloting, while 9.8 million new shares are allocated for eligible directors, key senior management, employees as well as persons who have contributed to the success of the group,” it said.
Vetece said that the remaining 68.6 million new shares will be reserved for private placement to selected investors.
"With an enlarged issued share capital of 392 million shares and an IPO price of 25 sen per share, Vetece will have a market capitalisation of RM98.0 million upon listing,” it added.
Following the prospectus launch, applications for the public issue are open from today and will be closed on Aug 14, 2024, at 5 pm.
Kenanga Investment Bank Bhd
is the principal adviser, sponsor, underwriter and placement agent for the IPO. - Bernama
