TechStore Submits IPO Listing Call To Raise Funds For Expansion, Working Capital

Tech-Store Malaysia Sdn. Bhd has filed for an initial public offering (IPO) on the Bursa Malaysia Securities’ ACE Market to raise funds for expansion which include hiring and purchasing new hardware and software.

The enterprise IT services firm’s proposed IPO involves a public issue of 125 million new shares and an offer-for-sale of 25 million existing shares at a price to be determined later, according to its draft prospectus. All in all, the listing would offer up to a 30% stake in the company.

“Our working capital requirements are expected to increase in tandem with the expected growth in our business,” TechStore said.
Apart from staff remunerations, the company also plans to use some of the proceeds as tender bonds and performance bonds for future projects.

TechStore mainly provides IT security and automation solutions, including command and control systems, surveillance systems such as closed-circuit televisions and fire alarms, as well as electronic payment and operating systems.

The company has an order book totalling RM135.8 million, catering to Malaysia and Singapore clients in transportation, hospitality, education, logistics and banking industries.

For the latest financial year ended December 2023, the company recorded net profit of RM7.7 million on revenue of RM62.2 million.

TechStore will make 25 million new shares available to the Malaysian public and 25 million shares for eligible persons under the IPO’s public issue. The company will also set aside 62.5 million new shares to Bumiputera investors and 12.5 million shares to select investors.

TechStore has also earmarked part of the proceeds to partially repay bank borrowings that currently totalled RM39.2 million, and set up new offices in Johor, where the company is carrying out projects related to the Rapid Transit Link between Singapore and Malaysia.

M&A Securities Sdn Bhd is the IPO’s adviser, sponsor, underwriter and placement agent.

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