Binasat seeks listing on ACE Market to boost market share

The IPO will open doors for new opportunities and enhance the brand recognition


Binasat Communications Bhd, a telecommunication supporting service provider, aims to grow its market share in the satellite and mobile segments between 7% and 8% annually respectively.

The company, which is seeking listing on the ACE Market of Bursa Malaysia, will capitalise on the country’s growing demand for telecommunication services.

COO Zulamran Hamat said capital expenditure in the telecommunication industry has been growing at the high single-digit annually, and such prospects offer overall growth to the industry.

“The government’s digitalisation initiatives through the Malaysian Communications and Multimedia Commission is a booster for us,” he said at Binasat’s prospectus launch ceremony in Kuala Lumpur yesterday.

He said despite service providers’ performance facing challenges in the last few years, Binasat believes that there are rooms for expansions.

“This is supported by the digitalisation efforts nationwide in the mobile segment, and the enhancement of technology. The dynamics of

these changes benefit us as a support service provider,” Zulamran said.

Binasat’s market share in the satellite and mobile segments in Malaysia stands at approximately 50% and 25% respectively.

Zulamran said the company is also eyeing regional markets like Vietnam, Myanmar and Laos within the short-to- medium-term period.

He said these South-East Asian countries have the population who will support Internet growth.

“We are confident to penetrate these markets. We are in talks with several interested parties,” he said, adding that talks were still at the preliminary stages.

Binasat, which is scheduled to be listed on Jan 8 next year, is offering 125.98 million ordinary shares at 46 sen each, comprising 40 million existing shares and a public issues of 85.98 million new shares.

Binasat expects to raise RM39.55 million from the exercise. The company will use 36.3% of the proceeds to set up a teleport, enhancing the company’s operations and management services capability (12.4%), fibre-optic network (12.1%), regional business expansion (3.8%), working capital (27.3%) and listing expenses (8.1%).

Kenanga Investment Bank Bhd is the principal advisor for the listing exercise.

Binasat MD Na Boon Aik said the initial public offering (IPO) will open doors for new opportunities and enhance the brand recognition.

“We believe that upon achieving the listed status, it will create more opportunities for us to engage with a broader potential business partners,” he added.

This year alone, the market had witnessed 13 IPOs including two on the LEAP (Leading Entrepreneur Accelerator Platform) Market compared to 12 IPOs in 2016.