IT infrastructure and cybersecurity solutions provider, Infoline Tec Group Bhd , has successfully launched its prospectus in conjunction with its initial public offering (“IPO”) on the ACE Market of Bursa Malaysia.
Infoline Tec and its subsidiaries (“the Group”) are principally involved in providing IT infrastructure solutions, cybersecurity solutions, managed IT and other IT services, and trading of ancillary hardware and software.
The Group provides end-to-end services from the initial stage of designing solutions that suits customers’ business needs and budget, to delivering and implementing projects, as well as managing and maintaining the implemented solutions.
From the IPO, Infoline Tec aims to raise gross proceeds of RM23.68 million (“IPO proceeds”) which will be mainly used to enhance its capabilities and strengthen its market position to capture the growing demand for IT solutions as the world moves towards the digital era.
Infoline Tec’s Chief Executive Officer, Mr. Choo Wei Chuen said, “Rapid technological shifts have accelerated the adoption of artificial intelligence (AI), big data, cloud computing, Internet of Things (IoT) and social and media computing.
In line with these trends, demand for IT infrastructure and cybersecurity solutions would increase as enterprises need to ensure that the large volumes of data generated are transmitted and stored securely.”
“Furthermore, we also foresee strong demand for managed IT services, which is a cost-effective solution for many enterprises without having to incur substantial operational expenses to set up their own dedicated IT team. By establishing a solid IT infrastructure and putting in the right technical resources, we can provide managed IT services to customers all over the world.”
“Hence, this listing exercise comes at an opportune time for us to pursue the attractive growth opportunities ahead. From the IPO proceeds, we would be able to expedite our expansion plans which would allow us to offer an expanded range of services to a larger customer base.”
Dato’ Charon Wardini Mokhzani, Group Managing Director of Malaysian Industrial Development Finance Berhad and Executive Director of MIDF Amanah Investment Bank Berhad said, “Infoline Tec has grown since it was founded in 2013 and the management team has built the company to be what it is today, an IT infrastructure and cybersecurity solutions provider with a strong portfolio of multinational and local customers operating in diverse industries and a well-established network of principals and suppliers.”
“The upcoming IPO of the Company represents the next stage of growth. On top of enabling the company to raise capital for expansion, the listing will also enhance the Group’s standing amongst existing and potential customers, provide greater transparency, and attract talent.”
To better serve its prospective and existing customers, the IPO proceeds will be mainly utilised to upgrade the Group’s hardware and software IT infrastructures. RM17.46 million, representing more than 70% of the IPO proceeds will be allocated to enhance the Group’s existing Network Operation Centre and to set up a Security Operations Centre, technology centre, and disaster recovery centre.
In addition, RM2.22 million will be channelled towards business expansion activities aimed at growing the Group’s geographical presence in Malaysia and in international markets while the remaining of the IPO proceeds will be utilised for listing expenses.
For the financial years ended 31 December 2018 (“FYE 2018”) to 31 December 2021 (“FYE 2021”), the Group’s revenue and profit after tax (“PAT”) grew at a compounded annual growth rate (“CAGR”) of 33.3% and 37.0% respectively.
In FYE 2021, the Group recorded a revenue of RM44.59 million and PAT of RM7.80 million. 64.2% of FYE 2021 revenue was derived from Malaysia while 18.5% was from the People’s Republic of China (“PRC”). The remaining 17.3% was contributed from other countries such as Hong Kong, Australia, Thailand, Singapore, Taiwan, South Korea, Indonesia and the Philippines, Japan and India.
Moving forward, the Group has set a target to distribute up to 30% of its annual profit after tax as dividends to shareholders. Infoline Tec’s IPO comprises a public issuance of 74.00 million new shares, representing 20.38% of the enlarged shares, as well as an offer for sale of 22.25 million existing shares, representing 6.12% of the enlarged shares by way of private placement to selected investors.
The public issue of 74.0 million new shares will be allocated in the following manner:
18.16 million new shares, representing 5.00% of the enlarged shares will be made available to the Malaysian public via balloting, of which at least 9.08 million new shares, representing 1.00% of the enlarged shares will be set aside strictly for Bumiputera investors;
8.27 million new shares, representing 2.28% of the enlarged shares will be made available for application by the eligible directors, employees, and persons who have contributed to the success of Infoline Tec and its subsidiaries (“Group”) (“Pink Form Allocations”);
2.17 million new shares, representing 0.60% of the enlarged shares will be made available by way of private placement to selected investors; and
45.40 million new shares, representing 12.50% of the enlarged shares will be made available by way of private placement to identified Bumiputera investors approved by the Ministry of International Trade and Industry, Malaysia.
Based on an issue price of RM0.32 per share and an enlarged share capital of 363.2 million shares, Infoline Tec will have a market capitalisation of RM116.2 million upon listing.
