KUALA LUMPUR: Enterprise information technology (“IT”) solutions provider, VETECE Holdings Berhad (“VETECE”) has successfully debuted on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) (“ACE Market”). The stock is categorised under the technology sector and carries the stock short name of VTC, with a stock code of 0319.
At the opening bell, VETECE’s share price opened at 50 sen, marking a premium of 100% above the issue price of 25 sen, with an opening volume of 7.0 million shares. This debut followed an initial public offering (“IPO”) oversubscription of 187.41 times, reflecting strong investor confidence in VETECE’s strategic vision and future growth potential.
Non-Independent Executive Vice Chairman of VETECE, Mr. Vernon Tee Chee Chiang said, “Today represents a momentous occasion for VETECE as we celebrate our successful listing on the ACE Market. This milestone reflects the dedication and hard work of our team for the past 21 years in the enterprise IT solutions industry. With this listing, we embark on a new chapter of growth and opportunity, bolstered by the fresh capital raised. We are eager to explore the possibilities that lie ahead in the IT industry.”
“As the world rapidly transitions towards a digital economy, the adoption of new technologies like 5G, artificial intelligence (“AI”), cloud computing, Internet of Things, and big data analytics is becoming increasingly prevalent among businesses seeking to maintain a competitive edge. This technological surge is expected to fuel the demand for enterprise IT solutions services.”
Non-Independent Executive Director and Chief Executive Officer of VETECE, Mr. Chan Wai Hoong said, “This favourable landscape underscores our commitment to expand our enterprise IT solutions portfolio by introducing new AI-driven data handling and analytic solutions. Furthermore, we aim to broaden our network of technology partners to enhance our product offerings and extend our client base locally and overseas. This strategic expansion will strengthen our capabilities in enterprise application integration, enterprise data engineering and analytic solutions, enabling us to better leverage emerging opportunities and drive growth ahead.”
According to an Independent Market Research report prepared by Protégé Associates Sdn Bhd, the enterprise IT solutions industry in Malaysia is forecasted to grow from RM23.5 billion in 2024 to RM29.5 billion in 2028, representing a compound annual growth rate of 5.7%.
Executive Director, Head of Group Investment Banking and Islamic Banking of Kenanga Investment Bank Berhad, Datuk Roslan Hj Tik said, “We are proud to support VETECE throughout their listing, which marks a significant milestone in the Group’s growth journey. This IPO will position them to capitalise on future opportunities in the enterprise IT solutions sector, as well as provide them with the capital and market presence needed to pursue continued innovation and expansion.”
In the financial year ended 31 August 2023 (“FYE 2023”), VETECE recorded a profit after tax of RM6.6 million on a revenue of RM23.1 million. This represents a 58.1% year-on-year (“YoY”) increase in PAT and an 11.0% growth in revenue. The improved performance was mainly attributed to increased contributions from existing and new projects, as well as higher gross profit margins.
To recap, out of the RM24.5 million raised from the IPO, the Group has earmarked RM2.2 million (9.0%) for the expansion of new core products and services about the new AI-driven data handling and analytic solutions. Additionally, RM3.3 million (13.4%) will be invested in strengthening its operations in Singapore. A further RM3.8 million (15.5%) has been set aside for establishing a Centre of Excellence for software solutions. The Group will also utilise RM6.5 million (26.6%) of the proceeds for hardware and software licensing fees and RM4.0 million (16.3%) will be allocated for loan repayments. The remaining RM4.7 million (19.2%) will be used for estimated listing expenses.
Kenanga Investment Bank Berhad is the Principal Adviser, Sponsor, Underwriter and Placement Agent for the IPO.
