KUALA LUMPUR: Main market-listed ARB Bhd has set plans to list its Internet of Things (IoT) business on the US NASDAQ Stock Exchange (NASDAQ).

According to a filing with Bursa Malaysia today, the proposed listing hopes to accelerate the company's IoT operations over the next few years as technological and economic breakthroughs in the last two years have paved the way for exponential growth in the future.

Executive director Datuk Sri Larry Liew Kok Leong said the company's IoT business has been gaining momentum over the last few years, shown in its latest results for the financial year ended 31st December 2021 (FY21).

"The Covid-19 pandemic has escalated our growth trajectory by the surge in demand for our services.

"What we have experienced over the last two years is the shift towards digitalisation, which is expected to continue to gain momentum with the rollout of 5G and automation.

"To ensure that we can serve the surging demand for our IoT services, the company is looking at options to gain funding for expansion and better allocation of its resources.

"Among one of the proposals that ARB board raised was to consider the listing of our IoT business on the NASDAQ," he said in a statement today.

ARB is a leading provider of IoT and information technology (IT) solutions in Malaysia.

One of the key benefits of the NASDAQ listing is promoting clearer segregation of business responsibilities and operations for ARB's existing IoT business.

This would enable the company to efficiently allocate its resources to accelerate the expansion and growth of the IoT business.

"The growth trajectory of our IoT business is expected to be significantly higher than other business units, which could create a disproportionate allocation of resources.

"With the listing of our IoT business unit, this will help to enable an efficient allocation of resources within the company to cater for the growth expansion of the IoT business segment," Larry said.

ARB's IoT business will also benefit from the NASDAQ listing as it will have direct access to a new fund-raising platform, increasing its financial flexibility to explore expansion and growth prospects.

Larry said the listing on NASDAQ, a globally recognised stock exchange, would also help ARB's IoT business gain recognition and enhance its corporate reputation.

"A listing on the NASDAQ Exchange will put ARB on the world map and enhance our corporate reputation, business profile and visibility.

"A stronger reputation will play a vital role in achieving greater market penetration and a broader customer base.

"This is especially true for businesses that involve multinational corporations," he said.

On top of that, the potential listing of ARB's IoT business division will add value for its shareholders.

Aside from that, it also helps to widen the investor base of ARB through the participation of the global investing community.

This is important to provide more resilient performance for its shareholders.

Currently, details of the proposed listings have yet to be determined, but the company's IoT business division is on track to meet NASDAQ's financial requirements.

The company will obtain the necessary approvals from the relevant authorities, including the United State Securities and Exchange Commission, Bursa Malaysia and shareholders' approval at the upcoming annual general meeting.

https://www.nst.com.my/business/2022/02/773581/arb-eyes-nasdaq-listing-its-iot-business