KUALA LUMPUR 13 May — ICT Zone Asia Bhd (“ICT Zone Asia” or “the Group”; KLSE: ICTZONE (03038)), a rapidly growing provider of technology financing solutions, has launched its prospectus in conjunction with its transfer listing from the LEAP Market to the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
Priced at RM0.20 per share, the IPO will raise RM26.60 million through the public issue of 133.00 million new ordinary shares (“Issue Shares”), representing 16.72 per cent of the enlarged issued share capital. This marks a key capital market milestone for the Group, reinforcing confidence in its earnings resilience, scalable and recurring business model, and long-term value creation strategy.
Of the total proceeds, RM21.00 million or 78.95 per cent will fund the ICT assets purchase to expand the Group’s core technology financing business. Another RM1.5 million will be allocated for sales and marketing, while the balance for listing-related expenses.
Aligned with the Business Digitalisation Initiative (“BDI”) announced by the Madani Government in March, ICT Zone Asia is well positioned to support the country’s ICT infrastructure agenda through its integrated technology financing offering, which cover full suite of value added services including proactive and analytical services for devices, remote managed services to provide maintenance and technical support services, data backup and device recovery services, security management as well as carbon neutral computing services (CNCS).
Managing Director and Chief Executive Officer Tommy Lim Kok Kwang said: “This IPO positions us to scale further and accelerate our leadership in technology financing. Our model is built for sustainability, with recurring income and a growing unbilled order book driving long-term visibility. With the capital raised, we aim to strengthen our presence and remain focused on achieving our RM500 million unbilled order book target within three years.”
Phua Yee Boon, Executive Director of SCS Global Advisory (M) Sdn Bhd, the Financial Adviser to the IPO, added: “ICT Zone Asia’s decision to proceed with its ACE Market listing reflects the Group’s sound fundamentals and readiness to strengthen its capital structure for the next phase of growth. Its financial results for FYE 2025, including a 53.4% year-on-year increase in EBITDA and margin expansion to 57.8%, are supported by the growing adoption of its subscription-based technology financing model, particularly among government-linked corporations and agencies transitioning to opex-driven ICT procurement.”
Despite a more cautious IPO market, ICT Zone Asia continues to deliver strong results. The Group achieved record revenue of RM127.8 million, profit after tax of RM9.1 million, adjusted PAT of RM10.6 million excluding one-off listing expenses.
“The Group’s contractual business model, coupled with its revenue visibility and operational efficiency, offers investors stable recurring cash flows and long-term earnings predictability. These characteristics are increasingly relevant in today’s market environment, where risk-adjusted fundamentals and consistent execution are key considerations,” added Phua.
Under the Issue Shares, 39.77 million of new shares are made available to the Malaysian public, 4.14 million shares for eligible persons and 89.09 million shares via private placement to the Ministry of Investment, Trade and Industry (“MITI”) approved Bumiputera investors. The IPO also includes an offer for sale of 21.00 million existing shares, of which 10.34 million shares will be offered to MITI approved Bumiputera investors and 10.66 million shares to selected investors by way of private placement.
The IPO closes on 20 May 2025, with listing scheduled for 3 June 2025. At the IPO price, ICT Zone Asia will debut with a market capitalisation of RM159.09 million, translating to a P/E of 18.09 times based on FYE 2025 earnings and 15.42 times based on FYE 2025 adjusted earnings after excluding one-off listing expenses.