KUALA LUMPUR (May 13): In a strategic move to deepen its foothold in technology financing, ICT Zone Asia Bhd has officially announced the pricing of its initial public offering (IPO) at 20 sen per share. The company is targeting to raise approximately RM26.6 million as it transitions from the LEAP Market to the ACE Market, with plans to enhance its asset portfolio.
The IPO consists of 133 million new shares, complemented by an offer for sale of up to 21 million existing shares intended for select Bumiputera investors. According to the financial details provided, 39.77 million new shares will be available to the public, while 4.14 million shares are reserved for eligible individuals, and 89.09 million shares are allocated for private placement to Bumiputera investors.
“This IPO positions us to scale further and accelerate our leadership in technology financing,” said Tommy Lim Kok Kwang, the managing director and CEO of ICT Zone Asia. “Our model is built for sustainability, with recurring income and a growing unbilled order book driving long-term visibility.”
The funds raised from the IPO will be utilized primarily to acquire ICT assets for their technology financing initiatives, with RM21 million allocated for this use. Additionally, the company plans to invest RM1.5 million in sales and marketing efforts, while the remaining funds will help cover expenses associated with listing on the ACE Market.
Dreaming big, Lim elaborated on their goals: “With the capital raised, we aim to strengthen our presence and remain focused on achieving our RM500 million unbilled order book target within three years.”
The proceeds from the share sale will primarily benefit ICT Zone’s selling shareholders, which include ICT Zone Holding Sdn Bhd and co-founder and non-executive chairman Datuk Seri Ng Thien Phing, who maintain a significant stake of 72.85% in ICT Zone Asia. Ng is also known for his role as the founder and executive chairman of SkyWorld Development Bhd, a listed property group.
Notably, the IPO comes with a six-month lock-in period for major shareholders, including ICT Zone Holding and Lim, along with family members and Ng's sisters. Post this period, they will have restrictions on how much of their shares can be sold annually, providing an element of stability for the investors involved.
Despite a drop in profitability, with a reported net profit of RM4.42 million in the second half ending January 31, 2025—a 16.8% decline year-on-year—ICT Zone Asia has seen a notable revenue increase of 24.8%, reaching RM70.1 million. “The drop in profits was due to higher finance and staff costs, alongside one-off listing expenses,” explained Lim, reassuring investors of the long-term upward trajectory in revenue. Overall, for the full year, the company reported a record net profit of RM8.8 million, which marks a 20% increase, while revenue grew by 11.7% to RM127.8 million.
Malacca Securities has taken on the roles of principal adviser, sponsor, and placement agent for this IPO, whereas Kenanga Investment Bank serves as a joint underwriter and placement agent. Financial advisory services for the transfer listing are being provided by SCS Global Advisory (M) Sdn Bhd.