SNS Networks agrees terms with M&A Securities over IPO overwriting deal

·2-min read
Malay Mail
Malay Mail

KUALA LUMPUR, June 14 — M&A Securities Sdn Bhd today agreed to an underwriting agreement worth 35.5 per cent of new shares with information and communications technology (ICT) system and solutions provider SNS Network Technology Bhd.

As reported by The Edge, the deal was made in accordance with M&A Securities’ attempt for its initial public offering (IPO) exercise to list on the ACE Market of Bursa Malaysia.

The IPO entails a public issue of 362.9 million SNS Network’s shares which represents 22.5 per cent of the enlarged share capital and an offer for sale of 48.4 million existing shares to selected investors by way of private placement.

Of the shares, 80.6 million shares will be made available to Malaysians, 48.4 million to qualified persons via pink form allocations, 201.6 million to Bumiputera investors via private placement, and 32.3 million to selected investors.

M&A Securities will underwrite a total of 129 million shares made available for application by the Malaysian public and pink form allocations, according to the ICT system and solutions provider.

“The listing is timely for our group as it will enable us to tap into the equity capital market to raise funds to accelerate the growth of our core business activities.

“The outbreak of the Covid-19 pandemic in 2020 and 2021 had led to the imposition of movement restrictions by the government to curb the spread of the virus. This has boosted the demand for ICT products and services due to working from home arrangements and online classes for students.

“The pandemic has also served as a catalyst to the rapid adoption and execution of digitisation initiatives in businesses to adjust to the new normal for business sustainability. Therefore, with the increased reliance on ICT, the demand for ICT products and services is expected to remain strong moving forward,” said SNS managing director Ko Yun Hung.

The proceeds from the IPO will primarily be utilised for capital expenditures to grow the company’s DaaS subscription-based service and to partially fund the development of a new regional centre.

A portion of the earnings will also be used to open 10 new retail outlets, fund JOI’s marketing efforts, repay bank loans, provide general working capital, and cover the expected listing costs.

By September 2022, SNS is expected to be listed on Bursa Securities’ ACE Market.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting