KUALA LUMPUR: Sarawak-based telecommunications firm Reach Ten Holdings Bhd has filed for an initial public offering (IPO) on the Main Market to raise funds to expand and build more towers.
The company plans to expand its fiber optic infrastructure in Kuching and establish three new networks in Miri, Sibu, and Bintulu, according to its draft prospectus filed to the Securities Commission Malaysia (SC) website.
"The further expansion of our existing fibre optic communication networks infrastructure in Kuching will enable us to reach underserved or newly developed areas, attracting new customers and thereby increasing our market share," it said.
Furthermore, the company intends to support the government's initiatives through construction of an additional 100 4G and/or 5G telecommunications towers in Sarawak over 36 months, particularly in Miri, Sibu and Bintulu.
"Our group has identified Miri, Sibu and Bintulu for the construction of 4G and/or 5G telecommunications towers as these cities have large populations, are urbanised cities and have established commercial and manufacturing activities which will support demand for 4G and/or 5G telecommunications services."
"In line with the growth of our satellite-based communication networks and services, we intend to enhance our satellite-based communication networks and service capability by acquiring additional mobile and fixed satellite terminals, hardware and software as well as enhancing our facilities in our teleport," it added.
The proposed IPO involves a public issue of 200 million new shares, and an offer for the sale of 100 million existing shares at a price to be determined later. The listing offers public investors up to a 30 per cent stake in the Sarawak-based company.
Under the public issue, Reach Ten is allocating 50 million new shares to the Malaysian public and 25 million to eligible persons.
The company is also allocating 125 million new shares for selected Bumiputera investors through private placement.
Reach Ten primarily provides satellite-based communication networks and services, as well as fiber optic communication networks and services.
The company also sells telecommunications infrastructure services and managed services.
Last year, the company earned a net profit of RM51.32 million from revenue of RM182.26 million.
Assets include a teleport and over 1,200 small satellite earth stations, as well as fiber optic channel infrastructure spanning over 200km and 467km of fiber optic cable communication networks in Sarawak.
The company also has several assets in Sabah and Peninsular Malaysia.