SRKK AI Bhd (KL:SRKKAI), which makes its debut on the ACE Market on Thursday (July 9), is a digital transformation service provider with a presence in Malaysia and Singapore.
The initial public offering (IPO) comprises the issue of 64 million new shares, which will raise RM20.48 million for the company, and an offer for sale of 13 million shares by the selling shareholders (Joel Resources Sdn Bhd and Five Loaves Sdn Bhd) to selected investors via a private placement. Both the issuance of new shares and the offer for sale is set at 32 sen per share.
The exercise will give SRKK AI a market capitalisation of RM90.88 million upon listing and an enlarged share base of 284 million shares. The IPO price reflects a price-earnings ratio (PER) of 13.35 times, based on SRKK AI’s earnings per share of 2.4 sen for its financial year ended Dec 31, 2025 (FY2025).
The group was founded in 1999 by SRKK AI’s promoter and chief commercial officer Yew Peng Fong, substantial shareholder Gan Siew Mei and Yew Eng Hoe, who is a director of SRKK Singapore. (Peng Fong and Eng Hoe are not related.) Back then, it was involved in information technology consultation and project implementation services focusing on cybersecurity and networking solutions, as well as the sale of IT hardware and software products.
Over the years, SRKK AI has expanded its geographical reach — via a venture into Singapore in 2008 — and range of services by offering solutions to support companies and government-linked corporations in various stages of the IT asset lifecycle, namely sourcing for IT hardware and software; consultation and implementation of solutions; upgrades, updates and maintenance; data security; and management of data and gaining business insights.
SRKK AI entered into a Microsoft AI Cloud Partner Program (MAICPP) agreement on Aug 1, 2023, which gives the group access to Microsoft branding materials, tools, portals, training and incentive programmes as well as eligibility to participate in distribution and reselling programmes. It is also the appointed distributor of Kaseya and NinjaOne in Malaysia, apart from distributing products for Hewlett-Packard, Dell and Sangfor Technologies.
In its prospectus, SRKK AI says it has incorporated artificial intelligence-enabled solutions and AI-powered tools sourced from their principals and distributors in its service offerings to clients. It stresses that it does not develop in-house proprietary AI technologies and mainly leverage, implement and integrate AI-enabled features provided by its principals.
“Nevertheless, our group has plans to develop intellectual property in software solutions, with a focus on AI capabilities, under our data analytics and business intelligence solutions segment,” it adds.
SRKK AI plans to commercialise proprietary AI-enabled software solutions within 24 months of receiving the IPO proceeds. A sum of RM1.32 million from the proceeds have been earmarked for the development of proprietary software solutions.
The sum is part of the RM4 million that the company plans to spend on its strategic growth initiatives in AI, which includes setting up AI labs and an AI academy. Note that AI-enabled solutions contributed 10.5% to SRKK AI’s total revenue in FY2025.
The company also plans to set up its Security Operations Centre (SOC) to expand its cybersecurity services subsegment.
SRKK AI currently derives the bulk of its group revenue — between 78.19% and 87.51% from FY2022 to FY2025 — from its Malaysian operation. The company plans to expand to Indonesia, where it will set up an IT advisory and consulting office in Jakarta within 24 months of listing. It has allocated RM1.84 million of the IPO proceeds for this purpose (see Table 3).
According to an independent market research report by Providence Strategic Partners that is included in the IPO prospectus, the digital transformation industry in Malaysia — comprising IT and cloud services, IT hardware and software products, data analytics and business intelligence solutions — is forecast to grow at a compound annual growth rate (CAGR) of 3.1%, 20.3%, 5.8% and 20.9% respectively between 2026 and 2028. This is expected to benefit SRKK AI as a digital transformation service provider.
Its planned expansion to Indonesia, where the digital transformation industry is forecast to grow at a CAGR of 9.8% between 2026 and 2028, bodes well for the group.
The risks and challenges highlighted by Providence include a competitive landscape where the barriers to entry are moderately low, the public’s lack of awareness on the need for cybersecurity solutions, disruptions to the supply of IT hardware, and economic, social and political conditions affecting the market.
