(From left): SNS executive director Kelvin Pah, Ko, M&A Securities deputy head of corporate finance Rachel Ho, M&A Securities managing director of corporate finance Datuk Bill Tan and M&A Securities head of corporate finance Gary Ting

KUALA LUMPUR (June 14): M&A Securities Sdn Bhd has agreed to underwrite 35.5% of the new shares in information and communications technology (ICT) system and solutions provider SNS Network Technology Bhd, which is en route to list on the ACE Market of Bursa Malaysia by September.

M&A Securities, which is the adviser, sponsor, underwriter and placement agent for SNS’ initial public offering (IPO) exercise, on Tuesday (June 14) signed an underwriting agreement with SNS in conjunction with the exercise.

Under the deal, M&A Securities will underwrite 129 million new shares of the public issue of 362.9 million new shares, representing 22.5% of SNS’ enlarged share capital, of the IPO. The IPO also involves an offer for sale of 48.4 million existing shares to selected investors by way of private placement.

Of the 362.9 million new shares, 80.6 million new shares will be made available to the Malaysian public via balloting; 48.4 million new shares for its eligible directors, employees and persons who have contributed to the success of the SNS group; 201.6 million new shares are reserved for private placement to Bumiputera investors approved by the Ministry of International Trade and Industry while the remaining 32.3 million new shares will be placed out to selected investors.

In a statement on Tuesday, SNS managing director Ko Yun Hung said the signing of the agreement will take the company a step closer towards listing on Bursa.

Proceeds from the IPO will be used mainly for capital expenditure to expand the company’s DaaS subscription-based service and to part finance the construction of its new regional hub. DaaS is a model for device leasing offered to customers based on monthly subscription payments.

Part of the proceeds will also be used to set up 10 new retail stores, to fund the marketing activities for its house brand JOI, to repay bank borrowings, for working capital and to defray the estimated listing expenses.

SNS’ core business activities are sale of ICT products comprising hardware, devices, and related peripherals for third party brands and JOI via its physical stores and online and commercial channels.

It is also involved in the provision of device repair and related services for Apple as well as sale of broadband services for Telekom Malaysia, Celcom and Maxis.