CEO Morning Brief

Infoline Tec Debuts on ACE Market With Modest Opening Premium of One Sen

Publish date: Thu, 14 Jul 2022, 08:39 AM
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TheEdge CEO Morning Brief
(From left) Infoline Tec Group Bhd independent non-executive director Tan Mui Ping, independent non-executive chairman Nor Azzam Abdul Jalil, chief operating officer Loo Wai Hong, chief executive officer Choo Wei Chuen, chief marketing officer Too Yit Meng and independent non-executive director Alwizah Al-Yafii Kamal at the listing ceremony of the company on the ACE Market of Bursa Malaysia in Kuala Lumpur on Wednesday (July 13).

KUALA LUMPUR (July 13): Information technology (IT) infrastructure and cybersecurity solution provider Infoline Tec Group Bhd on Wednesday (July 13) made its ACE Market debut on Bursa Malaysia at 33 sen — a one sen or 3.13% premium to its initial public offering price (IPO) issue price of 32 sen.

The stock saw 16.08 million shares exchange hands at the opening bell, making it the top traded counter on the Malaysian market. The group earlier saw the public portion of its IPO oversubscribed by 60.9 times.

Infoline Tec is principally involved in providing IT infrastructure solutions, cybersecurity solutions, managed IT and other IT services, together with trading of ancillary hardware and software.

Speaking at a virtual press conference in conjunction with the listing event, Infoline Tec chief executive officer Choo Wei Chuen said the group is very happy with the opening price and excited about implementing its future plans moving forward.

He noted that Infoline Tec had set its sights on strengthening its market presence in key operating markets of Malaysia and China, as well as other countries in Asia-Pacific.

“Based on the size of the company right now, we are looking forward to doing better and in the future, we will grow our capacity to support more customers. With our new facilities, we also can cater to more customers and we will expand as well.

“We are very open to all the customers coming to us and we are planning to step out of Malaysia into seeking opportunities in other countries as long as there’s no restrictions for us like the requirement to enter,” he said.

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 upgrade of Infoline Tec’s facilities and capabilities will enable it to increase its customer base and offer an expanded range of services.

Another RM2.22 million or 9.37% shall go towards business expansion activities to enhance the group’s geographical presence in Malaysia and China. Meanwhile, the remaining RM4 million of IPO proceeds or 16.89% will be utilised for listing expenses.

The group’s chief marketing officer Too Yit Meng, who was also present, meanwhile conceded that there are some delays in terms of hardware deliveries to its customers given the shortage of raw materials.

However, he said that Infoline Tec would share information with its customers during the projects’ planning phase by sitting down and planning together to mitigate and minimise any further delays in order to deliver the projects ahead.

“As for the material shortage when it comes to the manufacturing companies, that is something we can't really control. But what we do is we always keep our customers with alternative solutions.

“We know certain brands do not have such long lead times, and this is where we will present it to our customers that, for example, these are the certain brands that can deliver within the required timeline.

“What we are also actively doing is to make sure to always seek out what are the available supplies in the market, and to match it with our customers’ requirements,” he said.

Too added that Infoline Tec continues to seek for new projects despite operating in a challenging market, given that there are a lot of players and companies that are doing the same business.

“But what is important is that we emphasise more on what we can deliver, and what kind of values we can deliver to our customers,” he said.

Source: TheEdge - 14 Jul 2022

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