From left: M & A Securities Sdn Bhd associate director Lee Yoke Wah, Reach Ten Holdings Bhd executive director Lu Pak Lim, Reach Ten chairman Datuk Amar Jaul Anak Samion, Sarawak Deputy Premier Datuk Amar Professor Dr. Sim Kui Hian, Reach Ten managing director Leo Chin, M & A Equity Holdings Bhd managing director Datuk Bill Tan, M & A Securities head of corporate finance Gary Ting Hua Tai and M & A Securities deputy head of corporate finance Danny Wong.
KUALA LUMPUR: Sarawak-based telecommunications provider Reach Ten Holdings Bhd
is set to raise RM104mil through its initial public offering (IPO) ahead of its planned Main Market listing on May 2, 2025.
The company stated that its IPO is priced at 52 sen per share, projecting a market capitalisation of RM520mil upon listing, based on an enlarged share base of one billion shares.
Reach Ten intends to allocate RM60mil (57.7%) of the IPO proceeds to enhance its existing fibre optic network in Kuching and to build new fibre optic infrastructures in Miri, Sibu and Bintulu.
Additionally, RM25mil (24%) will be used to construct 100 new 4G and 5G telecommunication towers across Sarawak, with a focus on Miri, Sibu, and Bintulu. This effort aligns with the state government’s push to broaden Internet access, especially in rural regions.
The company also plans to invest RM4.3mil (4.1%) to upgrade its satellite-based communications network.
This includes the purchase of mobile and fixed satellite terminals, supporting hardware and software, and improvements to its teleport facilities.
“The remainder of the proceeds will be used for working capital requirements amounting to RM5mil (4.8%); RM1.7mil (1.6%) to repay bank borrowings, while the remaining RM8mil (7.7%) to defray the estimated listing expenses,” it said in a statement.
Managing director Leo Chin said the company would expand its fibre optic networks, enhance satellite capacities and develop digital solutions to provide seamless connectivity across Sarawak.
He said the IPO proceeds will enable it to further expand its existing fibre optic communication networks infrastructure in Kuching as this will enable it to reach underserved or newly developed areas, attracting new customers and thereby increasing its market share.
“In addition, building upon our experience in establishing our fibre optic communication networks infrastructure in Kuching and Samarahan, we intend to establish three new fibre optic communication network infrastructure in Miri, Sibu and Bintulu over the next three to four years, to meet customer demand and capture future business growth opportunities,” he said.
Currently, Reach Ten owns and operates a fibre optic communication network infrastructure in Kuching and Samarahan, spanning approximately 217km of fibre optic duct infrastructure and 649km of fibre optic cable link communication networks, which took nearly 14 years to develop.
Over the past two decades, Reach Ten had participated in numerous government initiatives, including Jendela, a nationwide programme to enhance broadband coverage and quality; the Sarawak Multimedia Authority Rural Telecommunication or Smart initiative, aimed at expanding connectivity in remote regions; and the Saluran initiative, ensuring reliable communication networks across Sarawak.
For the 10-month financial results ended Oct 31, 2024, Reach Ten registered a RM65.4mil net profit on the back of RM153.1mil in turnover.
The net profit achieved in the period under review has outperformed 2023’s full-year results.
For the financial year of 2023, the company posted a RM51.3mil net profit and a turnover of RM182.3mil.
Under the listing exercise, Reach Ten is issuing 200 million new shares and an offer for sale of 100 million existing shares, representing 20% and 10% of the enlarged share capital of Reach Ten respectively.
Of the 200 million issue shares, 50 million new shares will be made available to the Malaysian public via balloting and 25 million new shares for its eligible directors, employees and persons who have contributed to the success of Reach Ten Group under the pink form allocations. — Bernama
