Zulamran (right), Na (fourth left) and other director members of Binasat during its official debut yesterday.
KUALA LUMPUR: Binasat Communications Bhd made its debut on the Ace Market of Bursa Malaysia at 60 sen, a 14 sen premium above its issue price of 46 sen a share.
The telecommunications support services provider, the first company to be listed on Bursa Malaysia for this year, had an oversubscription rate of 34.23 times from the Malaysian public. The response for Binasat Communications’ IPO was extremely favourable, with its retail tranche of 13 million new shares applied by the Malaysian public.
A total of 7.2 million shares changed hands at the opening bell.
Binasat’s chief operating officer, Zulamran Hamat said the company had the confidence to continuously grow over the next one to two years in all sectors, namely satellite, mobile and fibre optics, given its experience and proven track record.
“There are also segments in the market which we have yet to explore. So, we should be able to expand further in terms of group revenue and in line with the capital expenditure of most telecommunication companies, with the modernisation of spectrum by the government and a few other initiatives towards expanding mobile coverage nationwide.
Asked about the company’s dependency on telco operators like Maxis and Huawei as the main revenue contributor of about 75 per cent previously, Zulamran said Binasat had gradually reduced this, by diversifying the customer base and capturing more of the services and equipment providers segment.
“Given that we have an recurring income of about 50 per cent, we are optimistic of sustaining growth and revenue.
“Any technology disruption will also benefit us, as we are the ones supporting the services,” he added.
Meanwhile, on expansion plans to Vietnam, Laos and Myanmar, he said Binasat was currently in talks with potential local partners in the respective countries, and hopes to set up a representative office for a start within this year.
“Due to strict government regulations in these countries, we need to find the right partner to work with and comply with all the rules,” Zulamran added.
Binasat principally involved in the provision of telecommunication supporting services for satellite; mobile and fibre optic telecommunications networks.
Managing director of Binasat, Na Boon Aik expressed, “This marks the realisation of hours and months of hard work invested by our dedicated management team and diligent staff as well as the guidance and support of our adviser and relevant authorities towards making this Initial Public Offering (“IPO”) a success.
“I am also very proud to share with you that the listing of Binasat Communications Berhad today marks the first listing of the year of 2018 on Bursa Securities.”
Through its IPO, Binasat has successfully raised total proceeds of RM39.55 million from its Public Issue, of which approximately 36.3 per cent of the proceeds will be utilised for setting up a teleport, approximately 12.4 per cent of the proceeds will be utilised for enhancing the Company’s O&M services capability, and approximately 12.1 per cent of the proceeds will be utilised to enhance fibre optic network installation and commissioning services capability.
Approximately 3.8 per cent of the proceeds will be utilised for regional business expansion, particularly into Vietnam, Myanmar and Laos, and a further 27.3 per cent of the proceeds will be utilised for enhancing the Company’s working capital, while the balance of 8.1% of the proceeds will be utilised to defray estimated listing expenses.
“We would like to extend our most sincere gratitude towards our working advisers for their invaluable guidance and support throughout this IPO, Kenanga Investment Bank Berhad who is our Principal Advisor.
“Last but not least, thank you to all of you gathered here once again for being part of this historical event as we turn the page into a new chapter of the Company’s corporate history,” Na expressed in closing.