KUALA LUMPUR: Reach Ten Holdings Bhd
aims to raise RM104mil from its initial public offering (IPO) on the Main Market of Bursa Malaysia, the bulk of which will go towards infrastructure expansion.
At its prospectus launch, the Sarawak-based telecommunications service provider said it plans to direct RM60mil or 57.7% of the proceeds towards expanding the fibre optic communication networks infrastructure in Kuching as well as establishing three new fibre optic communication networks in Miri, Sibu and Bintulu.
A further RM25mil (24%) of the proceeds will be used to construct an additional 100 4G and/or 5G telecommunication towers in Sarawak, particularly in the cities of Miri, Sibu and Bintulu.
Proceeds amounting to RM4.3mil (4.1%) will be used to enhance its satellite-based communication networks and service capability by acquiring additional mobile and fixed satellite terminals, hardware and software as well as enhancing its facilities in the teleport.
The company will also allocate RM5mil (4.8%) to working capital, RM1.7mil (1.6%) to repay bank borrowings and RM8mil (7.7%) to defray the estimated listing expenses.
Reach Ten is issuing 200 million new shares and an offer for sale of 100 million existing shares, representing 20% and 10% of its enlarged share capital respectively.
Of the issue shares, 50 million will be made available to the Malaysian public via balloting and 25 million for its eligible directors, employees and persons who have contributed to the success of Reach Ten under the pink form allocations.
The remaining 125 million issue shares will be placed out to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
As for the offer for sale portion, 100 million offer Shares will be reserved for private placement to selected investors.
At an IPO price of 52 sen per share, Reach Ten’s market capitalisation is projected to be RM520mil after listing, based on its enlarged share capital of one billion shares.
"We want to expand our fibre optic networks, enhance our satellite capacities and develop digital solutions to provide seamless connectivity across Sarawak.
"The IPO proceeds will enable us to further expand our existing fibre optic communication networks infrastructure in Kuching as this will enable us to reach underserved or newly developed areas, attracting new customers and thereby increasing our market share," said managing director Leo Chin in a statement.
He added that the three new fibre optic communication networks in Miri, Sibu and Bintulu will meet customer demand as well as capture future business growth opportunities.
Reach Ten’s listing on the Main Market of Bursa Securities is tentatively scheduled on May 2, 2025.
M&A Securities Sdn Bhd is the principal adviser, underwriter and placement agent for the IPO exercise.
