PETALING JAYA: IT infrastructure and cybersecurity solution provider Infoline Tec Group Bhd this morning debuted on the ACE Market of Bursa Malaysia at 33 sen for a one sen or 3.13% premium to its initial public offering price (IPO) price of 32 sen.
Infoline Tec CEO Choo Wei Chuen said the adoption of new technologies such as artificial intelligence, big data, cloud computing, internet of things, mobile and social computing would gain further traction as the world moves towards the digital era.
“Governments and businesses alike are cognisant that IT infrastructure and cybersecurity solutions are complementary and critical in supporting high-speed connectivity as well as in protecting data and networks from cybersecurity attacks.”
He said the group has set its sights on strengthening its market presence in Malaysia and China as well as other countries in the Asia Pacific as long as there are no restrictions to the requirement to enter.
“We hope to expand in the southern region in Malaysia as well as East Malaysia. In China, we plan to expand our sales and technical team in different regions like Shanghai, Beijing, Wuhan, Chengdu and Heilongjiang,” he told a virtual press conference following the group’s listing.
Infoline Tec has raised a total of RM23.68 million under its IPO, of which RM17.46 million or 73.74% will be utilised to enhance the group’s existing network operation centre and to set up a security operations centre, technology centre, and disaster recovery centre. The upgrades aim to increase its customer base and offer an expanded range of services.
Meanwhile, RM2.22 million (9.37%) will go towards business expansion activities to enhance geographical presence in Malaysia and China. The remaining RM4 million (16.89%) will be utilised for listing expenses.
Chief marketing officer Too Yit Meng stated that there are delays in hardware deliveries to customers as it has been impacted by the raw material shortages.
“What is important is we share this information with our customers so that we can plan together during the project planning stage to mitigate and minimise any delays,” he said.
Infoline Tec targets to distribute up to 30% of dividends from its annual audited profit after tax to shareholders.
The company recently posted its first quarterly result for the financial period ended March 31, 2022, registering a net profit of RM1.32 million and revenue of RM8.86 million.
MIDF Amanah Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.