Information and communication technology (ICT) system and solution provider SNS Network Technology Berhad is well positioned to benefit from the digital transformation of Malaysian businesses, government agencies and educational institutions. Under normal conditions after the new pandemic. In today’s statement, the company forecasts increased spending by businesses, government agencies and educational institutions to upgrade their IT platforms as part of their digitization plans to support hybrid working and e-learning options. doing.
Ko Yun Hung, managing director of the company, said SNS Network is looking to capitalize on the growing demand for ICT products and services as spending from the public and private sectors to upgrade IT systems shows no signs of slowing down. claimed to be. He further elaborated that the outbreak of the Covid-19 pandemic in 2020 and he in 2021 has increased demand for ICT products and services due to government-imposed travel restrictions.
In that sense, the pandemic has acted as a catalyst for the rapid adoption and execution of digitalization initiatives in business to adapt to the new normal of business sustainability. Therefore, the demand for ICT products and services is expected to remain strong as the dependence on ICT increases.
Speaking to reporters after the company’s listing ceremony at Bursa Malaysia Securities Berhad’s ACE Market, Ko said SNS Network will further expand its device-as-a-service (“DaaS”) subscription-based IT services after listing. said. He said that since the opening up of all economic sectors, the company has seen a surge in demand for DaaS subscription-based IT services from the public and private sectors, and given the potential growth from this segment, DaaS subscriptions It added that it will further expand its application-based IT services to more customers.
DaaS is a model of device leasing offered to customers based on monthly subscription payments. This service gives customers the flexibility to adjust usage according to modern business and operational needs to avoid large capital expenditures from bulk purchases of ICT products. From 2020 to June 30, 2022, SNS Network signed 82 of his DaaS subscriptions totaling RM255.86 million, and he received 75 inquiries from government agencies and listed companies. .
From the above inquiries, the SNS network has signed contracts with 26 government agencies with a total amount of RM247.49 million and with 3 listed companies with a total amount of RM0.55 million.
Based on inquiries from potential customers, SNS Network will purchase ICT products such as desktops, laptops, interactive smartboards, workstations, digital signage, printers and servers to support service expansion.
Under the listing exercise, the SNS network raised RM9,072 million from the public offering of 362.88 million new shares at an issue price of RM0.25 per share.
The list also includes an offer to sell 48.38 million existing shares in a private placement to selected investors. Of the total proceeds from the Initial Public Offering (“IPO”), RM33.4 million (36.9%) was allocated for capital expenditures, of which RM30.9 million was used to expand his DaaS subscription-based IT services and RM2.5 million Ringgit is used. It plans to launch 10 new retail outlets in Klang Valley, Johor and Penang.
A further RM18.00 million (19.8%) of the proceeds will be used to partially finance the construction of a new regional hub in Petaling Jaya to support the company’s nationwide expansion. The rest of the proceeds will be used to repay bank loans of RM20.00 million (22.0%), general working capital of RM13.12 million (14.5%) and marketing funds of RM1.50 million (1.7%) . The rest of his RM4.7 million (5.1%) will be used for his JOI activities and cover the estimated listing costs.
Based on the share capital expansion of 1.61 billion shares, SNS Network’s market capitalization at the time of listing will be RM403.19 million. M & A Securities Sdn Bhd is an Advisor, Sponsor, Underwriter and Placement Agent for IPO Practices.
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