KUALA LUMPUR: Enterprise information technology (“IT”) solutions provider VETECE Holdings Berhad (“VETECE”) has attracted significant investor interest for its upcoming initial public offering (“IPO”), which has been oversubscribed by 187.41 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
VETECE, through its subsidiaries (collectively referred to as the “Group”), specializes in the implementation of enterprise IT solutions, offering maintenance, support, and professional services, along with the resale of hardware and software. The Group’s portfolio includes application integration and Single Sign-On (“SSO”) management solutions, data engineering and analytics solutions, Customer Relationship Management (“CRM”) solutions, software testing solutions, as well as on-premise and cloud infrastructure solutions. By collaborating with technology leaders such as Oracle, WSO2, Salesforce, and Teradata, VETECE delivers customized IT solutions to clients across sectors including telecommunications, financial services, and technology. Among its prominent clients are Telekom Malaysia Berhad, Telstra Corporation Limited, and China Construction Bank.
The Group’s IPO consists of 137,200,000 ordinary shares, comprising a public issue of 98,000,000 new ordinary shares (“Issue Shares”), representing 25.0% of the enlarged issued share capital. Priced at RM0.25 per share, VETECE expects to raise RM24.50 million from this public issue. Additionally, the IPO includes an offer for sale of 39,200,000 existing shares (“Offer Shares”), accounting for 10.0% of the enlarged issued share capital, by way of private placement to selected investors.
VETECE received a total of 31,054 applications for 3,692,919,000 shares, valued at approximately RM923.23 million, for the 19,600,000 shares allocated to the Malaysian public, reflecting an oversubscription rate of 187.41 times. The 9,800,000 Issue Shares available for application by eligible directors, key senior management, employees, and contributors to VETECE’s success have been fully subscribed. Meanwhile, the 68,600,000 Issue Shares and 39,200,000 Offer Shares offered via private placement to selected investors have also been fully placed out.
Successful applicants will receive their notices of allotment by August 26, 2024.
VETECE’s Executive Vice Chairman, Mr. Vernon Tee Chee Chiang, commented, “The overwhelming response to our IPO reflects strong investor confidence in VETECE’s growth potential. The funds raised will be critical in accelerating our strategic initiatives, expanding our market reach, and enhancing our portfolio of enterprise IT solutions. By focusing on innovation and meeting customer needs, we aim to strengthen our position as a leading provider of enterprise IT solutions both domestically and regionally.”
Datuk Roslan Hj Tik, Executive Director and Head of Group Investment Banking and Islamic Banking at Kenanga Investment Bank Berhad, added, “We are thrilled with the overwhelming response to VETECE’s IPO, which demonstrates strong market confidence in the company’s growth trajectory and prospects. We are proud to support VETECE on this significant journey.”
VETECE is set to be listed on the ACE Market of Bursa Securities on Wednesday, August 28, 2024. Upon listing, VETECE will have a market capitalization of approximately RM98.00 million, based on an issue price of RM0.25 per share and an enlarged issued share capital of 392,000,000 shares.
Kenanga Investment Bank Berhad is the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the IPO.
