ITMAX to have market cap of RM1.1b at IPO price of RM1.07 – The Edge Markets MY

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From left: ITMAX executive director (corporate and finance) Michelle Tan Sing Chia, ITMAX independent non-executive chairman Tan Sri Ahmad Tajuddin Ali, Maybank IB CEO Datuk Fad’l Mohamed, ITMAX MD and CEO William Tan Wei Lun, ITMAX non-independent non-executive director Tan Sri Tan Boon Hock, CIMB Investment Bank deputy CEO Nor Masliza Sulaiman, and ITMAX executive director (business development) Datin Afinaliza Zainal Abidin
KUALA LUMPUR (Nov 25): Main Market-bound ITMAX System Bhd announced in a prospectus launch on Friday (Nov 25) an enlarged share capital of 1.03 billion shares upon listing, and it expects to raise RM342.4 million from the initial public offering (IPO).
With the 1.03 billion shares, ITMAX expects to have a market capitalisation of RM1.1 billion at an IPO price of RM1.07.
It also announced a dividend policy of at least 20% targeted payout ratio.
The company expects to raise RM203.89 million through the public issue of 190.55 million new shares.
ITMAX has earmarked, among others, 41.7% or RM85 million from the RM203.89 million raised for smart city application expansion to other local governments, federal ministries and existing customers, and 19.4% or RM39.5 million for network and telecommunication infrastructure expansion.
The IPO exercise also involves an offer for sale of approximately 129.45 million existing ordinary shares.
“ITMAX’s listing on Bursa Malaysia is part of our next stage of growth,” said its managing director and chief executive officer William Tan Wei Lun. 
“To facilitate this market expansion, ITMAX plans to continue to widen our fibre optic communications network as well as setting up a data lake facility in the Klang Valley,” he added.
Maybank Investment Bank Bhd (Maybank IB) CEO Datuk Fad’l Mohamed said: “ITMAX IPO is the only public offering in Asean by an integrated systems and solutions provider for smart cities.
“The demand, as seen from the quality cornerstone investors coming on board, has validated the importance of strong, distinct and resilient business models that will stand out in times of uncertainty.”
When asked about the cornerstone investors, Maybank IB managing director and head of regional equity capital markets Ramesh Manimekalanandan said they comprise 11 domestic and two foreign investors.
The cornerstone investors included AHAM Capital, AIA, Eastspring, Great Eastern, Hong Leong Assurance, Kenanga Investors, Maybank Asset Management, Principal and CMY Capital, while JP Morgan Asset Management and Lion Global were also mentioned.
ITMAX is involved in the supply, installation and provision of public space networked systems and investment holdings.
Its subsidiary Sena Traffic Systems Sdn Bhd focuses on research and development (R&D) on systems and application software, design and assembly of controllers, supply and installation of networked traffic management system, and provides leased and managed services of video surveillance and analytics systems.
Tan also said ITMAX’s corporate structure post IPO comprises Sena Holdings Sdn Bhd with a 51.3% stake, Ganda Sensasi Sdn Bhd with a 17.6% stake, while eligible directors hold 0.2% and the public 31%.
“Currently, ITMAX has two shareholders,” said Tan, adding that one of them is Sena Holdings with a 70% stake and the other is Ganda Sensasi with a 30% stake. 
The company’s revenue in FY2021 stood at RM79.8 million from RM47.5 million in the previous year, while its FY2021 profit after tax was RM29.2 million as compared to RM12.7 million in FY2020.
Maybank IB is the principal adviser, joint bookrunner, managing underwriter and joint underwriter for the IPO. CIMB Investment Bank is a joint bookrunner and joint underwriter, while AmInvestment Bank is a joint underwriter for the exercise.
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