KUCHING: Telecommunications service provider, Reach Ten Holdings Bhd, will construct 100 new 4G and/or 5G telecommunication towers in Sarawak as part of its expansion.
The construction will be funded by proceeds from its upcoming listing on the Main Market of Bursa Malaysia Securities Bhd.
Its Managing Director, Leo Chin, said RM25.0 million (24.0 per cent) from the RM104.0 million initial public offering (IPO) will be allocated for the tower deployment, with focus on Miri, Sibu and Bintulu.
The initiative, he stressed, supports the Sarawak government’s push to expand mobile connectivity, especially in underserved areas.
“This is very much a demand-driven initiative. We all know that the trend now is on 5G.
“The recent Digital Nasional Bhd (DNB) test, we were part of the partners to roll out the deployment. So, moving forward, we are hoping that the DNB will be dishing out more sites.
“Furthermore, we are also prepared to support mobile network operators (MNOs) in expanding 4G capacity and coverage based on market needs and local council requests,” he said.
He said this during a press conference after Reach Ten’s prospectus launching ceremony at the Waterfront Hotel here today.
In addition to the tower rollout, Reach Ten is allocating RM4.3 million (4.1 per cent) from the IPO to enhance its satellite-based communication networks.
This includes acquiring additional mobile and fixed satellite terminals, hardware and software, as well as upgrading its teleport facilities to strengthen overall service capabilities.
The remaining proceeds from the IPO, he added, will be channelled towards working capital (RM5.0 million), repayment of bank borrowings (RM1.7 million), and listing-related expenses (RM8.0 million).
For the 10-month financial period ended October 31, 2024 (10MFPE2024), Reach Ten posted a net profit of RM65.4 million on a revenue of RM153.1 million.
This surpasses its full-year results for the financial year 2023 (FY2023), which recorded a net profit of RM51.3 million and revenue of RM182.3 million.
The company’s net margin improved to 42.7 per cent from 28.2 per cent in FY2023.
As part of the IPO, Reach Ten is issuing 200 million new shares and offering 100 million existing shares, respectively representing 20.0 per cent and 10.0 per cent of its enlarged share capital.
Of the new shares, 50 million will be made available to the Malaysian public via balloting, 25 million allocated under the Pink Form to eligible directors, employees and contributors, and 125 million placed out to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI).
The 100 million offer-for-sale shares will be placed with selected investors through private placement.
Priced at RM0.52 per share, Reach Ten’s estimated market capitalisation post-listing is RM520.0 million.
The IPO is open for subscription until 18 April 2025, with Reach Ten’s listing tentatively scheduled for 2 May 2025.
M&A Securities Sdn Bhd is the principal adviser, underwriter and placement agent for the IPO.
