by DayakDaily Team
KUCHING, April 9: Sarawak-based telecommunications service provider Reach Ten Holdings Bhd (Reach Ten) expects to raise RM104.0 million under its listing exercise on the Main Market of Bursa Malaysia Securities Bhd (Bursa Securities).
The company said it aims to utilise a major part of its initial public offerings (IPO) proceeds on expanding its fibre optic network infrastructures, enhancing its satellite capacities and developing innovative digital solutions to provide seamless connectivity across Sarawak.
“The IPO proceeds will enable us to further expand our existing fibre optic communication networks infrastructure in Kuching as this will enable us to reach underserved or newly developed areas, attracting new customers and thereby increasing our market share.
“In addition, building upon our experience in establishing our fibre optic communication networks infrastructure in Kuching and Samarahan, we intend to establish three new fibre optic communication networks infrastructure in Miri, Sibu and Bintulu over the next three to four years, to meet the customers’ demands as well as to capture future business growth opportunities in Miri,” Reach Ten managing director Leo Chin said in a press statement.
Reach Ten plans to use RM60.0 million (57.7 per cent) of the proceeds raised from the IPO to expand its existing fibre optic communication network infrastructure in Kuching as well as to establish three new fibre optic communication network infrastructures in Miri, Sibu and Bintulu.
A further RM25.0 million (24 per cent) of the proceeds are expected to be used to construct an additional 100 4G and/or 5G telecommunication towers in Sarawak, particularly in the cities of Miri, Sibu and Bintulu to support the State government initiatives to widen internet coverage and connectivity, especially the 4G and 5G coverage to rural areas.
Part of the proceeds amounting to RM4.3 million (4.1 per cent) will be used to enhance its satellite-based communication networks and service capability by acquiring additional mobile and fixed satellite terminals, hardware, and software as well as enhancing its facilities in the teleport.
The remainder of the proceeds will be used for working capital requirements amounting to RM5.0 million (4.8 per cent); RM1.7 million (1.6 per cent) to repay bank borrowings while the remaining RM8.0 million (7.7 per cent) to defray the estimated listing expenses.
Reach Ten’s IPO is now open for subscription from today to April 18, 2025. Its listing on the Main Market of Bursa Securities is tentatively scheduled on May 2, 2025.
At an IPO price of RM0.52 per share, Reach Ten’s market capitalisation is projected to be RM520.0 million after listing, based on its enlarged share capital of 1.0 billion shares. M&A Securities Sdn Bhd is the Principal Adviser, Underwriter and Placement Agent for the IPO exercise.
For the 10-month financial results ended October 31, 2024, Reach Ten registered RM65.4 million net profit on the back of a RM153.1 million turnover.
Over the past two decades, Reach Ten had participated in numerous government initiatives, including JENDELA, a nationwide programme to enhance broadband coverage and quality; the Sarawak Multimedia Authority Rural Telecommunication or SMART initiative, aimed at expanding connectivity in remote regions; and the SALURAN initiative, ensuring reliable communication networks across Sarawak. – DayakDaily
