Cloudpoint Tech aims to raise RM40.4mil from IPO

KUALA LUMPUR: Cloudpoint Technology Bhd, scheduled to make its debut on the ACE Market of Bursa Malaysia on May 29, 2023, plans to raise RM40.4mil from its initial public offering (IPO) to fund its expansion plans.

The IT solutions provider said at the launch of its IPO prospectus it will utilise the proceeds to scale and accelerate its business in the high-growth areas of cloud and cybersecurity.

Of the amount raised, RM13.3mil will go towards business expansion, including building a new security operations centre, enhancing the existing network operations centre and establishing a new public cloud infrastructure.

From the remaining amount, RM15.8mil will be used for working capital, RM7.8mil for office relocation and RM3.5mil for listing expenses.

Cloudpoint executive director and CEO Choong Wai Hoong said the company has become one of the more prominent IT and cybersecyrity solution providers in the country since its inception in 2003.

“The IPO is a crucial milestone that will propel Cloudpoint forward, to scale up and accelerate our business growth.

“We will continue to deliver innovations and ensure sustainable profitability for our company, and more importantly, we are committed to delivering long-term value and exceptional returns to our shareholders,” he said in a statement.

Cloudpoint’s IPO comprises a total offering of 159.48 million shares at an IPO price of 38 sen per share.

The company will offer 53.16 million shares to institutional and selected investors and 26.58 million shares to the Malaysian public via balloting.

A further 13.29 million shares will be allocated to eligible directors and employees and 66.45 million shares for investors approved by the Ministry of Investment, Trade and Industry.

M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for Cloudpoint’s IPO.

According to the statement, Cloudpoint group’s clients are mostly large enterprises, comprising financial institutions , technology service providers and telecommunications companies in Malaysia.

In the financial year ended Dec 31, 2022, the group achieved revenue of RM90.6mil and profit after tax of RM13.15mmil.

It said about 89% of its revenue was derived from customers in the financial services sector, primarily major banks in Malaysia.

 

Sources : https://www.thestar.com.my/business/business-news/2023/05/09/cloudpoint-tech-aims-to-raise-rm404mil-from-ipo

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