KUALA LUMPUR (May 11): Independent professional cybersecurity services provider LGMS Bhd has inked an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd towards its move for a listing on the ACE Market of Bursa Malaysia Securities Bhd.
In a statement on Wednesday (May 11), LGMS executive chairman Fong Choong Fook said the underwriting agreement marked a key milestone in LGMS' initial public offering (IPO) journey.
Fong noted that the group has "timed" the IPO to fit its expansion plans and is now finalising its prospectus for the launch to take place in the coming weeks.
"Southeast Asia is experiencing rapid growth in the digital technology sector, and the increasing reliance on the internet also brings about security threats that can cause immense damages.
"Backed by the proceeds from the IPO, we will be scaling up our operations both within Malaysia and regionally being Singapore, Vietnam and Cambodia," he said.
According to LGMS, the group is primarily involved in cybersecurity assessment and penetration testing, cyber risk management and compliance, and the provision of digital forensics and incident response services.
In October last year, it was reported that LGMS was seeking an ACE Market listing to raise funds for its business expansion and working capital.
According to the group's IPO prospectus on the Securities Commission Malaysia's website, 91.395 million new shares are to be issued under the listing exercise.
It said 22.8 million of these shares will be made available for application by the Malaysian public, followed by 12.5 million shares to be reserved for eligible directors and employees as well as persons who have contributed to the success of the group.
Meanwhile, 11.4 million shares will be made available by way of private placement to bumiputera investors approved by the Ministry of International Trade and Industry (MITI), while another 44.695 million will be made available for institutions and selected investors.
Additionally, the IPO also comprises an offer for sale of 45.6 million existing shares by way of private placement to identified bumiputera investors approved by MITI.
For the financial year ended Dec 31, 2020 (FY20), LGMS posted a higher profit after tax of RM8.07 million from RM6.33 million a year prior. The group reported a revenue of RM20.65 in FY20, which was only marginally higher than the RM20.56 million it achieved in FY19.