Enterprise information technology (“IT”) solutions provider, VETECE Holdings Berhad (“VETECE”) (威特思公司) has successfully launched its prospectus today in conjunction with its upcoming initial public offering
(“IPO”) and listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) (“ACE Market”).
VETECE, through its subsidiaries, (collectively known as the “Group”) is principally involved in providing implementation services of enterprise IT solutions as well as, maintenance, support, and professional services and the resale of hardware and software. Its portfolio of enterprise IT solutions includes application integration and Single Sign-On (SSO) management, data engineering and analytics, Customer
Relationship Management (CRM), software testing, and both on-premise and cloud infrastructure.
By partnering with technology providers such as Oracle, WSO2, Salesforce, and Teradata, the Group delivers tailored IT solutions to clients in diverse sectors including telecommunications, financial services and technology sectors. VETECE’s clientele base encompasses established corporations such as Telekom Malaysia Berhad, Telstra Corporation Limited, and China Construction Bank.
Executive Vice Chairman of VETECE, Mr. Vernon Tee Chee Chiang (郑集強) said, “Attractive prospects lie ahead for our Group as digital transformation drives growth.
The increasing complexity of IT ecosystems, and the adoption of cloud computing, have created substantial demand for data integration services. This trend is further amplified by the growing reliance on data-driven decision-making across both private and public sectors.
Executive Director and Chief Executive Officer of VETECE, Mr. Chan Wai Hoong (陈伟雄) said, “Our listing on the ACE Market will unlock new opportunities to accelerate our growth plans and capitalise on the increasing opportunities within this fast paced and rapidly advancing industry. The additional capital raised will be pivotal in executing several key strategies which include strengthening our enterprise IT
solutions portfolio, solidifying our market position and enhancing our competitive edge.”
The upcoming IPO exercise will raise RM24.5 million. Of this, the Group will allocate RM2.2 million (9.0%) to introduce AI-driven data handling and analytic solutions to complement its existing enterprise IT solutions offerings. RM3.3 million (13.4%) will be utilised to strengthen its Singapore operations, leveraging the country’s role as a gateway to the Asia Pacific region.
To further expand its geographical footprint, RM3.8 million (15.5%) is earmarked to establish a Centre of Excellence for software solutions. This centre will allow the Group to remotely execute overseas projects from Malaysia, ensuring data security, costefficiency and serving as a demonstration centre to showcase its enterprise IT solutions.
Hardware and software licensing fees will account for RM6.5 million (26.6%) of the proceeds, while RM4.0 million (16.3%) will be used for loan repayments. The remaining RM4.7 million (19.2%) will cover IPO-related expenses Executive Director, Head of Group Investment Banking and Islamic Banking of
Kenanga Investment Bank Berhad, Datuk Roslan Hj Tik said, “The listing on the ACE Market signifies just the beginning of VETECE’s growth story. This milestone not only provides essential capital for expansion but also elevates the Group’s industry profile, attracting more prominent clients and top talents. With these resources,
VETECE is well-positioned to achieve sustainable growth. We are honoured to have supported the team on this journey and eagerly anticipate their future successes.”
In the financial year ended 31 August 2023 (“FYE 2023”), VETECE’s revenue increased by 11.1% year-on-year (“YoY”) to RM23.1 million, as compared to RM20.8 million from the previous corresponding financial year (“FYE 2022”). This was due to higher contributions from existing and new projects. The Group’s profit after tax surged by 58.1% YoY to RM6.6 million in FYE 2023, from RM4.2 million in FYE 2022 on the
back of higher revenue and gross profit generated.
The Group’s IPO exercise comprises a public issuance of 98.0 million new ordinary shares in VETECE (“Shares”), representing 25.0% of its enlarged share capital, as well as an offer for sale of 39.2 million existing Shares, or 10.0% of the enlarged share capital by way of private placement to selected investors.
Out of the 98.0 million new Shares, 19.6 million new Shares will be made available to the Malaysian public via balloting, while 9.8 million new Shares are allocated for eligible Directors, key senior management, employees as well as persons who have contributed to the success of the Group. The remaining 68.6 million new Shares will be reserved for private placement to selected investors.
With an enlarged issued share capital of 392.0 million Shares and an IPO price of 25 sen per Share, VETECE will have a market capitalisation of RM98.0 million upon listing.
Following the prospectus launch, applications for the public issue are open from today and will be closed on 14 August 2024 at 5.00pm. The Group is targeted to be listed on the Bursa Securities on 28 August 2024.
Kenanga Investment Bank Berhad is the Principal Adviser, Sponsor, Underwriter and Placement Agent for the IPO.
