KUALA LUMPUR (24 April) — Technology financing solutions provider, ICT Zone Asia Berhad (“ICT Zone Asia” or “the Group”; KLSE: ICTZONE (03038)) has signed an underwriting agreement with Malacca Securities Sdn Bhd and Kenanga Investment Bank Berhad for its transfer of listing from the LEAP Market to the ACE Market of Bursa Malaysia Securities Berhad.
ICT Zone Asia has reaffirmed its plan to proceed with its ACE Market IPO in the second quarter of this year, signaling confidence in its strong business fundamentals despite prevailing market uncertainties.
For the financial year ended 31 January 2025, the Group recorded its highest-ever revenue of RM127.77 million and a profit after tax (PAT) of RM9.14 million. Excluding one-off listing-related expenses, adjusted PAT stood at RM10.6 million, lifting return on equity (ROE) to 16.3%, up from 14.3% a year earlier, while EBITDA rose 53.4% to RM73.9 million.
Managing Director and Chief Executive Officer, Tommy Lim Kok Kwang, said: “The Group’s decision to proceed with the IPO at this market condition underscores the strong execution capabilities of our teams at ICT Zone Asia and reflects our confidence in the strength and resilience of our recurring-revenue model, particularly our technology financing solutions business.”
“As demand for technology financing solutions increases, the proceeds from this IPO will enable us to secure more contracts and build up our order book. We are on track to achieve our internal target of an unbilled order book of RM500 million within three years post-listing,” Lim added.
Lim further stated that the signing of the underwriting agreement marks a significant milestone in the company’s transition from the LEAP Market to the ACE Market, thereby strengthening its foundation for sustained growth.
“We are pleased to support ICT Zone Asia in its journey to the ACE Market. The Group’s solid financial track record, recurring revenue model, and clear growth strategy make this a compelling IPO candidate. We believe this listing offers investors a solid platform for long-term participation in the technology financing space,” said Lim Chia Wei, Managing Director of Malacca Securities Sdn Bhd.
“Given ICT Zone Asia’s solid earnings track record and unique position within the ICT sector, we view this IPO as timely and well-supported by strong fundamentals,” said Datuk Roslan Hj Tik, Executive Director, Head of Group Investment Banking & Islamic Banking, Kenanga Investment Bank Berhad.
ICT Zone Asia plans to issue up to 133.00 million new ordinary shares (“Issue Shares”) through its IPO, representing 16.72 per cent of the company’s enlarged issued share capital of 795.45 million shares.
Out of the total Issue Shares, 39.77 million are available for subscription by the Malaysian public through balloting. Additionally, 4.14 million shares are reserved for ICT Zone Asia’s directors, key senior management, and employees. Meanwhile, 89.09 million shares have been allocated to selected Bumiputera investors via private placement.
An offer for sale of existing shares through private placement, meanwhile, will involve 21.00 million shares for selected investors and Bumiputera investors.
Malacca Securities Sdn Bhd is the IPO’s principal adviser, sponsor, joint underwriter and joint placement agent. Kenanga Investment Bank has been appointed as the joint underwriter and joint placement agent while SCS Global Advisory (M) Sdn Bhd is the financial adviser for the IPO.