Vetece said its IPO entails a public issue of 98 million new ordinary shares, representing 25% of its enlarged share capital, as well as an offer for sale of 39.2 million or 10% of its enlarged share capital to selected investors by way of private placement.
“Out of the 98 million new ordinary shares, 19.6 million shares will be made available to the Malaysian public via balloting, while 9.8 million shares will be allocated to eligible employees.
“The remaining 68.6 million shares are reserved for selected investors by way of private placement,” it said.
Vetece said Kenanga IB will underwrite a total of 29.4 million ordinary shares made available to the Malaysian public.
“This timely listing coincides with a surge in demand for enterprise IT services, driven by the ongoing digital transformation of the economy and increased adoption of technologies like 5G, artificial intelligence (AI), cloud computing, robotics, Internet of Things (IoT) and big data analytics.
“Businesses are increasingly reliant on technologies like remote access solutions and process automation to ensure operational continuity,” said the group’s executive vice-chairman Vernon Tee in a statement.
In addition, he said the enterprise IT services market is expected to reach RM23.5 billion in 2024 and climb to RM29.5 billion in 2028.
Meanwhile, group CEO and executive director Chan Wai Hoong said with the IPO exercise, the group aims to enhance its financial flexibility and capitalise on attractive market opportunities ahead, particularly in leveraging AI for data handling and analytics solutions.
“The IPO proceeds will be mainly utilised to roll out new core products and services, strengthen our Singapore operations, establish a Centre of Excellence for software solutions, facilitate the purchase and renewal of hardware and software licensing fee, and repayment of loans,” said Chan.
Vetece is expected to be listed by the third quarter of 2024 (Q3 2024), with Kenanga IB being its principal adviser, sponsor, underwriter and placement agent for the IPO.
With a track record spanning over 20 years, Vetece said the group and its subsidiaries, deliver enterprise IT solutions to empower businesses to achieve their operational requirements.
It said Vetece’s client base primarily encompasses players in the telecommunications and financial services industries, reflecting the group’s domain expertise.
Major clients include Telekom Malaysia Bhd, Telstra Corporation Ltd in Australia, and banks in Malaysia.