KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Reach Ten Holdings Bhd, a telecommunications company based in Sarawak, has filed for an initial public offering (IPO) on the Main Market of Bursa Malaysia to raise funds for its expansion, particularly in building more towers and extending its fibre optic infrastructure.
The company plans to expand its fibre optic infrastructure in Kuching and set up three additional networks in Miri, Sibu, and Bintulu, according to the draft prospectus posted on the Securities Commission Malaysia's website. The expansion aims to reach underserved and newly developed areas to attract new customers and increase market share.
Reach Ten provides satellite-based communication services, fibre optic communication networks, and telecommunications infrastructure and managed services. In 2023, the company reported a net profit of RM51.32 million on revenue of RM182.26 million.
The company's assets include a teleport, over 1,200 small satellite ground stations, more than 200km of fibre optic duct infrastructure, and 467km of fibre optic cable networks in Sarawak, with additional assets in Sabah and Peninsular Malaysia.
The proposed IPO will include a public issue of 200 million new shares and an offer for sale of 100 million existing shares, offering investors up to a 30% stake in the company. Proceeds from the IPO will fund the construction of 100 4G and 5G towers in Sarawak, as well as enhancements to Reach Ten's satellite-based communication networks.
The remaining funds will be used to repay bank borrowings, support working capital requirements, and cover listing expenses. The public issue will allocate 50 million shares to the Malaysian public, with 25 million shares designated for eligible persons and 125 million shares reserved for select Bumiputera investors.
Following the listing, the managing director Chin Yu Lay and executive directors Lu Pak Lim, Wong Kiing Ting, and Eddryson Effe Kuehjin Anak Bika will retain significant ownership in the company, although their shareholdings will be reduced. M&A Securities is the principal adviser, underwriter, and placement agent for the IPO.
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