Categories: MarketsNews

SNS Network Technology signs underwriting agreement with M&A Securities

by S BIRRUNTHA / pic source: SNS Network

ICT system and solutions provider SNS Network Technology Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its IPO exercise to list on the ACE Market of Bursa Malaysia Securities Bhd.

In a statement today, the company said the IPO entails a public issue of 362.9 million new shares in SNS Network, representing 22.5% of the enlarged share capital and an offer for sale of 48.4 million existing shares to selected investors by way of a private placement.

Of the 362.9 million new shares, 80.6 million will be made available to the Malaysian public via balloting; 48.4 million new shares for its eligible directors, employees and persons who have contributed to the success of SNS Group under the Pink Form Allocations; 201.6 million new shares are reserved for private placement to Bumiputera investors approved by the International Trade and Industry Ministry, while the remaining 32.3 million new shares will be placed out to selected investors.

Pursuant to the underwriting agreement, M&A Securities will underwrite a total of 129 million new shares made available for application by the Malaysian public and Pink Form Allocations.

“Proceeds from the IPO will be used mainly for capital expenditure to expand the company’s Data-as-a-Service (DaaS) subscription-based service and to partly finance the construction of the company’s new regional hub.

“DaaS is a model for device leasing offered to customers based on monthly subscription payments. The service provides customers the flexibility to adjust their usage according to their latest business and operational needs to avoid large capital expenditure for bulk purchase of ICT products,” it said.

The company added that part of the proceeds will also be used to set up 10 new retail stores, fund marketing activities, repay bank borrowings, general working capital and defray the estimated listing expenses.

SNS Network MD Ko Yun Hung said the signing of the agreement will take the company a step closer towards listing on Bursa Securities.

“The listing is timely for our group as it will enable us to tap into the equity capital market to raise funds to accelerate the growth of our core business activities.

“The outbreak of the Covid-19 pandemic in 2020 and 2021 had led to the imposition of movement restrictions by the government to curb the spread of the virus. 

“This has boosted the demand for ICT products and services due to working from home arrangements and online classes for students,” he added.

Additionally, he noted that the pandemic has also served as a catalyst to the rapid adoption and execution of digitisation initiatives in businesses to adjust to the new normal for business sustainability.  

Therefore, he said with the increased reliance on ICT, the demand for ICT products and services is expected to remain strong moving forward.

SNS Network is scheduled to be listed on the ACE Market of Bursa Securities by September this year.

M&A Securities is the advisor, sponsor, underwriter and placement agent for the IPO exercise.


Intan TMR

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