VETECE Holdings Berhad launched its prospectus today in conjunction with its upcoming initial public offering and listing on the ACE Market of Bursa Malaysia Securities Berhad.
The group is principally involved in providing implementation services of enterprise IT solutions as well as, maintenance, support, and professional services and the resale of hardware and software. Its portfolio of enterprise IT solutions includes application integration and Single Sign-On (SSO) management, data engineering and analytics, Customer Relationship Management (CRM), software testing, and both on-premise and cloud infrastructure.
The upcoming IPO exercise will see the group looking to raise RM24.5 million of which it said will allocate RM2.2 million to introduce AI-driven data handling and analytic solutions to complement its existing enterprise IT solutions offerings. RM3.3 million (13.4%) will be utilised to strengthen its Singapore operations, leveraging the country’s role as a gateway to the Asia Pacific region.
To further expand its geographical footprint, RM3.8 million (15.5%) is earmarked to establish a Centre of Excellence for software solutions. This centre will allow the Group to remotely execute overseas projects from Malaysia, ensuring data security, cost-efficiency and serving as a demonstration centre to showcase its enterprise IT solutions.
Hardware and software licensing fees will account for RM6.5 million (26.6%) of the proceeds, while RM4.0 million (16.3%) will be used for loan repayments. The remaining RM4.7 million (19.2%) will cover IPO-related expenses
The Group’s IPO exercise comprises a public issuance of 98.0 million new ordinary shares in VETECE, representing 25.0% of its enlarged share capital, as well as an offer for sale of 39.2 million existing Shares, or 10.0% of the enlarged share capital by way of private placement to selected investors.
Out of the 98.0 million new Shares, 19.6 million new Shares will be made available to the Malaysian public via balloting, while 9.8 million new Shares are allocated for eligible Directors, key senior management, employees as well as persons who have contributed to the success of the Group. The remaining 68.6 million new Shares will be reserved for private placement to selected investors.
With an enlarged issued share capital of 392.0 million Shares and an IPO price of 25 sen per Share, VETECE will have a market capitalisation of RM98.0 million upon listing.
Following the prospectus launch, applications for the public issue are open from today and will be closed on 14 August 2024 at 5.00pm. The Group is targeted to be listed on the Bursa Securities on 28 August 2024.
Kenanga Investment Bank Berhad is the Principal Adviser, Sponsor, Underwriter and Placement Agent for the IPO.
