Binasat eyes RM39.55m from IPO

: ACE market-bound Binasat Communications Bhd, which plans to raise RM39.55 million from its initial public offering exercise (IPO), is in the “preliminary stage” of expansion into the regional market.

The company, which is involved in the provision of telecommunications support services for satellite, mobile and fibre optic telecommunications network, is slated for listing on Jan 8 next year. It has a market capitalisation of RM120 million.

Binasat has earmarked 36.3% of the proceeds to set up a teleport, while 12.4% has been side-lined for the enhancement of the group’s operations and maintenance (O&M) service capabilities while about 12.1% is allotted for the enhancement of fibre optic network installation and commissioning services.

It has also apportioned 3.8% of the proceeds raised for its regional expansion into , Myanmar and .



Binasat COO Zulamran Hamat said at a media conference held after the group’s prospectus launch ceremony yesterday that Binasat has chosen Vietnam, Myanmar and Laos as destinations of choice for expansion considering the population size, internet penetration and technology enhancement conditions in these countries.

“At this stage the (IPO) allocation is mainly for setting up a representative office in the regional market.”

On top of that, Zulamran said the group is also looking to capitalise on the capital expenditure (capex) growth in the telco industry, which is about 7%-8% per annum.

While acknowledging the challenging atmosphere in the telco industry, Binasat said that the engineering segment, which entails the provision of civil, mechanical and electrical services in the satellite, mobile and fibre optics areas – provides room for expansion on the back of digitalisation of mobile networks and enhancement of technology.

Binasat’s IPO exercise involves a total offer of up to 125.98 million new ordinary shares at an offer price of 46 sen per share. Of this, 85.98 million new shares will be up for public issue, with 13 million being made available to the Malaysian public, 13 million for eligible directors and employees and 59.98 million for placement for selected investors.

Domestically, the group claims to have a 57% for maintaining satellite ground stations located at petrol stations and 64% for O&M for all satellite ground stations.

Maxis Broadband Sdn Bhd and Huawei Technologies Sdn Bhd are its major customers. Maxis contributed about 49.5% to the group’s revenue for FY17 while Huawei contributed about 26.3%.

Source: The Sun Daily





Leave a Reply

Your email address will not be published. Required fields are marked as *

Time limit is exhausted. Please reload CAPTCHA.