SRKK AI Unveils IPO Prospectus, Aims to Raise RM25 Mil from ACE Market
SRKK AI Unveils IPO Prospectus, Aims to Raise RM25 Mil from ACE Market
SRKK AI Bhd executive director and CEO Yew Lip Sin (fourth from left), executive chairperson Rahima Beevi Mohamed Ibrahim (fifth from left), executive director and COO Yeoh Kai Hearn (third from left), with other board members and TA Securities representatives at the IPO prospectus launch on Thursday.
Written by The Edge
PETALING JAYA (June 18): SRKK AI Bhd on Thursday unveiled its ACE Market listing prospectus, seeking to raise over RM20 million for the information technology services firm’s expansion.
The initial public offering (IPO), priced at 32 sen per share, will also raise another RM4.16 million for more than a dozen shareholders through two private vehicles under an offer for sale of their existing shares, according to the prospectus.
Applications for the IPO will close on June 25 and listing has been scheduled for July 9.
Based in Klang, SRKK mainly provides consultation, project implementation and managed services to corporations, government-linked companies, resellers and other service providers in Malaysia and Singapore.
The company is a direct bill partner under the Microsoft Cloud Solution Provider programme that allows direct purchase of Microsoft cloud solutions and resale to other vendors.
SRKK AI CEO Yew Lip Sin speaks at the company’s IPO prospectus launch on Thursday. (Photos by Shahrin Yahya/The Edge)
Proceeds from the IPO have been earmarked for its artificial intelligence (AI) initiatives, including RM4 million for setting up a laboratory to test products, an academy offering courses related to AI, and to develop its own data analytics and business intelligence solutions with AI capabilities.
“We are strengthening our AI-first strategy,” said SRKK AI CEO Yew Lip Sin. “We are developing in-house AI-enabled IT to address real business challenges for the wider enterprise audience.”
The company is also setting aside RM3.7 million to build an in-house security operations centre and RM1.84 million for the company’s expansion into Indonesia. The remaining 53% of the IPO proceeds will be used for branding and marketing, as working capital, and to cover listing expenses.
Yew is one of the shareholders cashing part of their stakes in SRKK in the IPO through a sale of existing shares held by Joel Resources Sdn Bhd and Five Loaves Sdn Bhd.
SRKK AI has set a dividend policy of distributing at least 20% of its net profit.
Last year, the company made a net profit of RM6.8 million on revenue of RM112.2 million. More than half of its revenue came from recurring income such as subscription fees for use of cloud services, fees on service contracts, and rental of hardware and software.
The rest came from consultation and project implementation services, sale of hardware and software, and fees charged to franchisees for managed services.
TA Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.
