KUALA LUMPUR: Itmax System Bhd, en route to listing on Bursa Malaysia Main Market on Dec 13, plans to raise RM342.4 million from its initial public offering (IPO).
At an enlarged issued share capital of 1.03 billion shares and share price of RM1.07, its market capitalisation will be RM1.1 billion.
The company is primarily involved in the business of supply and installation and provision of public space networked systems.
The IPO exercise involves an offer of 129.45 million existing ordinary shares. It will raise RM203.89 million through a public issue of 190.55 million new shares. The public issue will be available until Dec 1, 2022.
Itmax’s non-independent managing director and CEO William Tan Wei Lun said over the years it has carved out a position within the public space networked systems sector with smart traffic lights system, smart street lighting and smart video surveillance systems to form the backbone for clients’ smart city infrastructure deployments.
“Our systems include the incorporation and use of artificial intelligence with machine learning and deep learning algorithms to help our customers in identifying specific events automatically as it happens that enables city planning and management,” he said at the IPO launch on Nov 25.
He added that it has invested in a fibre optic communications network for the smart public space networked systems.
“Moving forward, we are seeking to increase our presence and market share outside of the central region with plans also to foray into new target segments by providing networked systems for residential township development and commercial development projects.”
To facilitate market expansion, Itmax plans to continue to widen its fibre optic communications network as well as set up a data lake facility in the Klang Valley.
Maybank Investment Bank Bhd CEO Datuk Fad’l Mohamed said it is the second largest technology sector IPO in Malaysia.
“This is the only public offering in Asean by an integrated systems and solutions provider for smart cities,” he added.
Itmax has earmarked 41.7% of the proceeds for the expansion of its smart city application. It has budgeted 6.1% and 9.8% for the expansion of its research and development capabilities and expansion into the enterprise market respectively.
Another 19.4% has been allocated towards the network and telecommunication infrastructure expansion, 14.3% for working capital and 3.9% for the repayment of borrowings. The remaining proceeds will be for the IPO and listing-related expenses.
The group intends to declare a yearly dividend of at least 20% of its profit after tax.
Maybank Investment Bank is the principal adviser, joint bookrunner, managing underwriter and joint underwriter for the IPO. CIMB Investment Bank Bhd is the joint bookrunner and joint underwriter whereas AmInvestment Bank Bhd is the joint underwriter for the IPO.