Sarawak’s Reach Ten moves closer to Bursa listing with underwriting agreement
KUALA LUMPUR (March 5): Sarawak-based telecommunications service provider Reach Ten Holdings Berhad (Reach Ten) has signed an underwriting agreement with M&A Securities Sdn Bhd (M&A Securities) ahead of its planned listing on the Main Market of Bursa Malaysia.
The initial public offering (IPO) comprises a public issue of 200 million new shares and an offer for sale of 100 million existing shares, representing 20 per cent and 10 per cent of Reach Ten’s enlarged share capital, respectively.
Managing director Leo Chin said the agreement brings the company a step closer to its listing on Bursa Securities.
“The IPO is timely as it will enable Reach Ten to raise funds to expand its telecommunications infrastructure in Sarawak to support the state government initiatives to widen internet coverage and connectivity, especially the 4G and 5G coverage to rural areas.
“Our past track record is a testament to our technical capabilities and ability to deliver projects. Over the years, we have participated and completed several government initiatives projects to enhance connectivity across Sarawak, both in the urban and rural areas,” he said in a statement today.
Reach Ten Group provides satellite-based communication networks and services, fibre optic communication networks, telecommunications infrastructure services, and managed services.
It is licensed under the Communications and Multimedia Act 1998 as a network facilities provider, network service provider, and application service provider, offering a full suite of connectivity solutions, including satellite, fibre, and managed services for telecommunications companies, corporates, and small and medium enterprises in Malaysia.
The company has recorded strong financial growth, driven by higher demand for its broadband and point-to-point leased line services.
Its revenue surged 112 per cent to RM182.3 million in the financial year ended 31 December 2023 (FY2023), compared to RM86 million in FY2021, reflecting a two-year compounded annual growth rate (CAGR) of 45.6 per cent.
Net profit also saw substantial growth, increasing 483 per cent to RM51.3 million in FY2023 from RM8.8 million in FY2021, registering a two-year CAGR of 141.4 per cent.
Reach Ten is expected to debut on the Main Market of Bursa Securities in May 2025.
-Agency
