Binasat aims to raise RM40mil from IPO

KUALA LUMPUR: Binasat Communications Bhd aims to raise RM39.55mil in gross proceeds from the public issue of its initial public offering (IPO) of 125.38 million ordinary shares of 46 sen each.

Of the total IPO, managing director Na Boon Aik said 13 million issue shares would be made available to the public, 13 million shares for eligible directors, employees and persons who contributed to the group, 59.98 million for private placement, while a further 40 million would also be set aside for private placement.

Through the public issue, about 36.3% of the proceeds would be utilised for the setting up a teleport, 12.4% for enhancing the company’s operations and maintenance ( O and M) service capability and 12.1% to enhance a fibre optic network installation and commissioning capability.

“About 3.8% of the proceeds will be utilised for regional business expansion, particularly into Vietnam, Myanmar and Laos.

“A further 27.3% will be utilised for enhancing the company’s working capital, while the balance of 8.1% will be for defraying estimated listing expanses,” he said in his speech at the launch of the company’s IPO here yesterday.

Scheduled to be listed on the Ace Market of Bursa Malaysia on Jan 8, 2018, Binasat is principally involved in the provision of telecommunication supporting services for satellite, mobile and fibre optic telecommunications networks, the laying of fibre optic cables and installing network equipment.

The company also provides O and M services, which includes scheduled and unscheduled maintenance at sites as well as uplink and downlink services for live telecasts, for networks throughout Peninsular Malaysia and Sabah, Sarawak.

Na said the group had a proven track record of more than 13 years, serving all major domestic telcos and telecommunication equipment suppliers as well as over 250 technical personnel stationed in all states throughout Malaysia to date.

“Our IPO will open doors for us to enhance the company’s business as well as brand recognition. We believe that upon achieving listed status, it will create more opportunities for us to engage with a broader field of potential business partners,” he added. — Bernama