PETALING JAYA: SBS Nexus Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd for its initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia.
M&A Securities will be underwriting 41.65 million shares, made available to the Malaysian public and eligible persons, via pink form allocations.
SBS Nexus’s IPO entails the public offering of 171.5 million ordinary shares comprising a public issue of 122.5 million shares and an offer for sale of 49 million shares, which collectively represent 35% of SBS Nexus Group’s enlarged issued share capital of 490 million shares.
Of the 122.5 million shares offered, 24.5 million will be opened for subscription by the Malaysian public, while another 17.15 million will be reserved for eligible applicants. A further 61.25 million shares will be placed privately with Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
The remaining 19.6 million shares will be allocated to selected investors through a private placement exercise.
This structure aims to ensure a balanced distribution across public, eligible and strategic investor groups.
There is also an offer for sale of 49 million shares, to be allocated through a private placement to selected investors.
SBS Nexus managing director CEO Wong Chun Mun said the signing of the underwriting agreement with M&A Securities not only reinforces confidence but also brings SBS Nexus a step closer to its IPO journey to become an ACE Market-listed company.
“This comes at an opportune time as we are ready to take advantage of the vast opportunities and vibrancy in the branding and marketing industry in Malaysia.
“We offer an extensive range of services as a one-stop branding and marketing solutions provider for local businesses and entrepreneurs in various stages of their business lifecycle.
“One of our key unique competencies is our ability to propose and cross-sell a range of branding and marketing solutions to our customers, creating a seamless, cohesive branding strategy for them,“ Wong said in a statement.
SBS Nexus, an investment holding company and branding and marketing solutions specialist, is principally involved in the provision of offline and digital branding solutions.
Wong said the wide range of service offerings provided by SBS Nexus caters to prevalent consumer trends and ever-changing market demand, which is expected to support the continued growth of SBS Nexus Group.
The IPO proceeds will be used to establish a new headquarters, including relocating to a larger office to support the company’s anticipated growth. Part of the funds will also go towards strengthening its presence within the Malay-speaking SME community.
In addition, the company plans to invest in further branding and marketing efforts, as well as expand its mobile app, web-based application and website development services to enhance its overall digital capabilities.
The balance of the proceeds will be used to defray estimated listing expenses.
SBS Nexus has recorded strong financial growth, with revenue increasing from RM11.6 million for the financial year ended Dec 31, 2022 (FY22) to RM29.92 million in FY24, and its profit after tax grew from RM1.58 million in FY22 to RM7.6 million in FY24, a compounded annual growth rate of 219%.
M&A Securities serves as the principal adviser, sponsor, underwriter and placement agent for the IPO, which will be priced later.
