SNS Network was successfully listed on ACE Market with the opening price of 0.25 sen, the IT network company aims to tap into the growing digitalisation trend that is sweeping the globe and here in Malaysia
The company feels it is well-positioned to benefit from the digital transformation of corporate Malaysia, government agencies and educational institutions in the new post-pandemic normal.
“Since the opening of all economic sectors, we have seen a surge in demand for DaaS subscription-based IT service from the public and private sectors. In view of the potential growth from this segment, SNS Network will further expand its DaaS subscription-based IT service offerings to more customers,” he further added.
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.
Since 2020 and up to 30 June 2022, SNS Network has entered into 82 DaaS subscriptions with a total subscription value of RM255.86 million and received 75 enquiries from governmental bodies and public listed companies.
From the above-mentioned enquiries, SNS Network has entered into contracts with 26 governmental bodies amounting to RM247.49 million and three public listed companies amounting to RM0.55 million.
Based on enquiries from potential customers, SNS network will purchase ICT products such as desktops, laptops, interactive smartboards, workstation, digital signages, printers and servers to support the expansion of the service.
Under the listing exercise, SNS Network has raised RM90.72 million from its Public Issue of 362.88 million new shares at an issue price of RM0.25 per share.
The listing also includes an offer for sale of 48.38 million existing shares to selected investors by way of private placement.
Of the total initial public offering (“IPO”) proceeds, RM33.40 million (36.9%) will be allocated for capital expenditure of which RM30.90 million will be used to expand its DaaS subscription-based IT service and RM2.50 million to set-up 10 new retail stores in the Klang Valley, Johor and Penang.
A further RM18.00 million (19.8%) of the proceeds will be used to part finance the construction of the Company’s new Regional Hub in Petaling Jaya to support its nationwide expansion.
The remainder of the proceeds will be used for the repayment of bank borrowings amounting to RM20.00 million (22.0%), RM13.12 million (14.5%) for general working capital, RM1.50 million (1.7%) to fund the marketing activities for JOI® while the remaining RM4.70 million (5.1%) to defray the estimated listing expenses.
Based on the enlarged share capital of 1.61 billion shares, the total market capitalisation of SNS Network upon its listing would be RM403.19 million.
