KUALA LUMPUR: Enterprise IT services provider TechStore Berhad (“TechStore”) (科技万库有限公司) has attracted overwhelming investor interest for its initial public offering (IPO), recording an oversubscription rate of 96.66 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
Comprehensive IT Solutions Provider
Through its subsidiaries (collectively, the “Group”), TechStore specializes in IT security and automation solutions, offering end-to-end services such as design, development, customization, installation, integration, testing, and maintenance for IT infrastructure. The Group provides comprehensive support for hardware, software, and infrastructure, catering to various industries, including transportation, utilities, hospitality, IT security, and logistics.
Since its founding in 2011, TechStore has built a strong reputation, particularly in public transportation projects, where its solutions have been implemented in Malaysia’s LRT and MRT systems. The Group is also involved in the Malaysia-Singapore RTS Link project and serves a diverse clientele, including multinational corporations, public-listed companies, and government agencies.
IPO Details
TechStore’s IPO consists of 500,000,000 ordinary shares, comprising:
- 125,000,000 new shares issued at RM0.20 per share, raising an expected RM25.0 million.
- 25,000,000 existing shares offered via private placement to selected investors.
The public portion of the IPO received 23,333 applications for 2,441,458,100 shares, valued at approximately RM488.3 million, reflecting an oversubscription rate of 96.66 times:
- Bumiputera portion: 11,890 applications for 1,097,912,500 shares (oversubscribed 86.83 times).
- Public portion: 11,443 applications for 1,343,545,600 shares (oversubscribed 106.48 times).
Additionally, the 25,000,000 shares allocated to eligible directors, employees, and contributors to the Group’s success have been fully subscribed.
Meanwhile, the private placements of:
- 12,500,000 new shares and 25,000,000 offer shares to selected investors, and
- 62,500,000 shares to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI)
…have also been fully placed out.
Strong Market Confidence in TechStore
TechStore’s Managing Director, Mr. Tan Hock Lim (陈玞霖), expressed his gratitude for the robust response:
“We are deeply honoured by the overwhelming support for our IPO, which underscores the public’s confidence in TechStore’s fundamentals and future prospects. The funds raised will accelerate our expansion plans and position us to seize growth opportunities in the enterprise IT services industry.”
“The enterprise IT services industry is critical to Malaysia’s digital transformation, helping businesses innovate and improve operational efficiency. With rising demand for advanced IT solutions—driven by 5G and digital infrastructure developments—we are committed to delivering high-quality, innovative solutions that meet evolving market needs,” he added.
Utilisation of IPO Proceeds
From the RM25.0 million raised, TechStore has allocated:
- RM11.5 million (45.9%) – Working capital
- RM2.7 million (10.9%) – Hiring business development personnel
- RM2.3 million (9.2%) – Capital expenditure (equipment, hardware, IT software, and a new Johor Bahru branch)
- RM5.0 million (20.0%) – Repayment of bank borrowings
- RM3.5 million (14.0%) – Listing expenses
ACE Market Listing on 18 February 2025
TechStore is set to be listed on the ACE Market of Bursa Securities on Tuesday, 18 February 2025. Upon listing, it will have a market capitalisation of RM100.0 million, based on an issue price of RM0.20 per share and an enlarged share capital of 500,000,000 shares.
M & A Securities Sdn Bhd is the Adviser, Sponsor, Sole Underwriter, and Placement Agent for the IPO exercise.
