SNS Network Technology inks underwriting agreement with M&A Securities

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KUALA LUMPUR: SNS Network Technology Bhd has entered into an underwriting agreement with M&A Securities Sdn Bhd for its preliminary public providing (IPO) train to checklist on the ACE Market of Bursa Malaysia.

The IPO entails a public concern of 362.9 million SNS shares, representing 22.5% of the enlarged share capital and a proposal on the market of 48.4 million present shares to chose traders by the use of personal placement.

Of the shares, 80.6 million might be made accessible to the Malaysian public, 48.4 million to eligible individuals by way of pink type allocations, 201.6 million for personal placement to Bumiputera traders and 32.3 million for chosen traders.

The ICT system and options supplier stated in an announcement that M&A Securities will underwrite a complete of 129 million shares made accessible for utility by the Malaysian public and pink type allocations.

“The listing is timely for our group as it will enable us to tap into the equity capital market to raise funds to accelerate the growth of our core business activities,” said SNS managing director Ko Yun Hung.

On outlook, he said the Covid-19 pandemic has boosted the demand for ICT products and services due to working from home arrangements and online classes for students.

“The pandemic has also served as a catalyst to the rapid adoption and execution of digitalisation initiatives in businesses to adjust to the new normal for business sustainability.

“Therefore, with the increased reliance on ICT, the demand for ICT products and services is expected to remain strong moving forward,” he added.

Proceeds from the IPO might be used primarily for capital expenditure to develop the corporate’s DaaS subscription-based service and to half finance the development of the corporate’s new regional hub.

Part of the proceeds can even be used to set-up 10 new retail shops, to fund the advertising actions for JOI, repay financial institution borrowings, common working capital and to defray the estimated itemizing bills.

SNS is scheduled to be listed on the ACE Market of Bursa Securities by September 2022.



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