Monday, August 22, 2022 5:20 p.m. MYT
KUALA LUMPUR, August 22 – SNS Network Technology Bhd’s initial public offering (IPO) for the public portion has been oversubscribed by 6.95 times with a total of 8,257 requests for 640.84 million shares received for the 80 .64 million new shares that were made available.
Chief Executive Ko Yun Hung said the response received to the information and communication technology (ICT) systems and solutions provider’s IPO showed public confidence in the strategies and prospects of business growth.
“Since the opening of all economic sectors after the Covid-19 pandemic, we have seen an increase in demand for subscription-as-a-service (DaaS) services from both the public and private sectors, as many companies have adopted the hybrid working model which requires them to upgrade their IT infrastructure and ICT products,” he said in a statement today.
He said that given the potential growth of this segment, SNS Network Technology will further expand its subscription DaaS service offerings to more customers.
“A portion of the proceeds from the IPO will be used to purchase the TIC products to increase our inventory to support this expansion,” he said.
According to SNS Network Technology, the public portion of Bumiputera shares was oversubscribed by 4.31 times after a total of 3,853 applications for 214.26 million new shares received while for the remaining public portion, a total of 4,404 applications were received. for 426.59 million new shares were received, representing an oversubscription of 9.58 times At the same time, the 48.38 million new shares for its directors, employees and eligible persons who contributed to the success of the SNS group also been fully subscribed.
Further, he said his Placement Agent has confirmed that all private placements to Bumiputera investors screened and approved by the Ministry of International Trade and Industry (MITI) and screened investors have been fully placed.
As part of the listing exercise, he said SNS Network Technology is expected to raise RM90.72 million through its public offering of 362.88 million new shares at an issue price of 25 sen per share. .
He added that the listing also included an offer to sell 48.38 million existing shares to selected investors by way of private placement.
Based on the expanded share capital of 1.61 billion shares, the total market capitalization of SNS Network Technology at listing would be RM403.19 million. The company is expected to list on the ACE market on September 2. — Bernama