Infoline Tec to expand to Chinese market amid strict Covid policy

by ANIS HAZIM/pic source:

INFOLINE Tec Group Bhd is committed to enhance its geographical presence in the People’s Republic of China (PRC) despite the country’s strict zero-Covid policies, according to its COO Loo Wai Hong.

The information technology (IT) infrastructure and cybersecurity solution provider saw its opening price of 33 sen on Bursa Malaysia Securities Bhd’s ACE Market today, which represents a premium of one sen above its IPO price of 32 sen.

“For the time being, our China’s operation had resumed since March 22. Now, we have faced those restrictions. Moving forward, I believe the growth in businesses and projects should expand in China’s market,” Loo said at a virtual press conference after Infoline listing today.

Infoline has set RM2.22 million or 9.37% of the total IPO proceeds of RM23.68 million towards its business expansion activities in Malaysia and in the PRC.

Another RM17.46 million or 73.74% will be utilised to enhance Infoline’s existing network operation centre and to set up a security operations centre, technology centre, and disaster recovery centre to increase its customer base and offer an expanded range of services.

Meanwhile, the remaining RM4 million of IPO proceeds or 16.89% will be utilised for its listing expenses.

Apart from China, the company also plans to expand its presence in other international markets and eyeing other opportunities in the future.

“We are planning to step out of Malaysia with other opportunities in other countries so as to not restrict us to any specific country.

“Once requirements come, we will try our best to deliver and to serve the customer overseas,” said Infoline CEO Choo Wei Chuen.

The group noted that it is facing a slight delay in its hardware deliveries due to the shortages of raw materials and supply chain disruptions.

“But what is important is that we share this information with our customers so that we can sit down and plan together with our customers during the project planning stage.

“So that we can mitigate and minimise any delays when we deliver the projects,” Infoline CMO Too Yit Meng said.

Additionally, he said that the group is actively looking for new projects to improve and grow the group organically.

In its recent first-quarter results for the financial period ended March 31, 2022, Infoline registered a net profit of RM1.32 million and revenue of RM8.86 million.

In terms of Infoline’s dividend policy, its board of directors target to distribute dividends of up to 30% of the group’s annual audited profit after tax attributable to the shareholders of the group.

MIDF Amanah Investment Bank Bhd is the principal advisor, sponsor, underwriter and placement agent for the IPO exercise.