KUALA LUMPUR, Aug 22 — SNS Network Technology Bhd’s initial public offering (IPO) for the public portion has been oversubscribed by 6.95 times with a total of 8,257 applications seeking 640.84 million shares received for the 80.64 million new shares that were made available.
Managing director Ko Yun Hung said that the response received for the information and communications technology (ICT) system and solutions provider’s IPO signified public confidence in the company’s growth strategies and prospects.
“Since the opening of all economic sectors after the Covid-19 pandemic, we have seen a surge in demand for device-as-a-service (DaaS) subscription-based service from the public and private sectors as many companies have adopted hybrid work model that require them to upgrade their IT infrastructure and ICT products,” he said in a statement today.
He said in view of the potential growth from this segment, SNS Network Technology would further expand its DaaS subscription-based service offerings to more customers.
“Part of the IPO proceeds will be used to purchase the ICT products to increase our inventory to support this expansion,” he said.
According to SNS Network Technology, the Bumiputera public portion of shares was oversubscribed by 4.31 times after a total of 3,853 applications for 214.26 million new shares received while for the remaining public portion, a total of 4,404 applications for 426.59 million new shares were received, representing an oversubscription of 9.58 times Meanwhile, the 48.38 million new shares for its eligible directors, employees and persons who have contributed to the success of SNS group have also been fully subscribed.
Additionally, it said its placement agent has confirmed that all private placement to selected Bumiputera investors approved by the Ministry of International Trade and Industry (MITI) and selected investors have been fully placed out.
Under the listing exercise, it said SNS Network Technology is expected to raise RM90.72 million from its public issue of 362.88 million new shares at an issue price of 25 sen per share.
It said the listing also included an offer for sale of 48.38 million existing shares to selected investors by way of private placement.
Based on the enlarged share capital of 1.61 billion shares, the total market capitalisation of SNS Network Technology upon its listing would be RM403.19 million The company is scheduled to be listed on the ACE Market on September 2. — Bernama
