by DayakDaily Team
KUCHING, March 5: Sarawak-based telecommunications service provider Reach Ten Holdings Bhd (Reach Ten) signed an underwriting agreement with M&A Securities Sdn Bhd (M&A Securities) for its listing on the Main Market of Bursa Malaysia Securities Bhd (Bursa Securities).
In a press statement, Reach Ten said it is tentatively scheduled to list on the Main Market of Bursa Securities in May 2025.
The initial public offering (IPO) entails a public issue of 200.0 million new shares and an offer for sale of 100 million existing shares, representing 20 and 10 per cent of the enlarged share capital of Reach Ten respectively.
Pursuant to the underwriting agreement, M&A Securities will underwrite a total of 75.0 million Issue Shares made available to the Malaysian public via balloting and eligible directors, employees of Reach Ten and its subsidiaries, and persons who have contributed to the success of the group. The remaining 125 million shares will be placed out to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI).
As for the offer-for-sale portion, 100 million offer shares are reserved for private placement to selected investors.
Reach Ten managing director Leo Chin said the signing of the agreement will take the company a step closer towards listing on the Main Market of Bursa Securities.
“The IPO exercise is timely for the Company as it will enable Reach Ten to raise funds to expand its telecommunications infrastructure in Sarawak to support the State government initiatives to widen internet coverage and connectivity, especially the 4G and 5G coverage to rural areas.
“Our past track record is a testament to our technical capabilities and ability to deliver projects. Over the years, we have participated and completed several government initiatives projects to enhance connectivity across Sarawak, both in the urban and rural areas,” he added.
Reach Ten Group is principally involved in the provision of satellite-based communication networks and services; fibre optic communication networks and services; and telecommunications infrastructure services and managed services.
Licensed under the Communications and Multimedia Act 1998 as a Network Facilities Provider, Network Service Provider and Application Service Provider, the company offers a full suite of connectivity solutions that include satellite, fibre and managed services and solutions for telecommunications companies, corporate and small and medium sized enterprises in Malaysia.
Reach Ten has achieved significant growth in revenue and net profit in financial year ended Dec 31, 2023 (FY23) attributable to higher demand for its broadband services and point-to-point leased line services.
The company’s revenue was at RM182.3 million in FY23 while its net profit increased was at RM51.3 million in FY23. – DayakDaily
