KUALA LUMPUR, Information technology (IT) solutions provider Vetece Holdings Bhd has inked an underwriting agreement with Kenanga Investment Bank Bhd (Kenanga IB) for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia. Vetece said its IPO entails a public issue of 98 million new ordinary shares, representing 25 per cent of its enlarged share capital, as well as an offer for sale of 39.2 million, or 10 per cent, of its enlarged share capital to selected investors by way of private placement. Out of the 98 million new ordinary shares, 19.6 million ordinary shares will be made available to the Malaysian public via balloting, while 9.8 million ordinary shares will be allocated to eligible employees. The remaining 68.6 million ordinary shares are reserved for selected investors by way of private placement. Kenanga IB will underwrite a total of 29.4 million ordinary shares made available to the Malaysian public. "This timely listing coincides with a surge in demand for enterprise IT services, driven by the ongoing digital transformation of the economy and increased adoption of technologies like 5G, artificial intelligence (AI), cloud computing, robotics, Internet of Things (IoT) and big data analytics. "Businesses are increasingly reliant on technologies like remote access solutions and process automation to ensure operational continuity," said the group's executive vice-chairman Vernon Tee Chee Chiang in a statement. He further said the enterprise IT services market is expected to reach RM23.5 billion in 2024 and climb to RM29.5 billion in 2028. Group chief executive officer and executive director Chan Wai Hoong said with the IPO exercise, the group aim to enhance its financial flexibility and capitalise on attractive market opportunities ahead, particularly in leveraging AI for data handling and analytics solutions. "The IPO proceeds will be mainly utilised to roll out new core products and services, strengthen our Singapore operations, establish a Centre of Excellence for software solutions, facilitate the purchase and renewal of hardware and software licensing fee, and repayment of loans," said Chan. Vetece is expected to be listed by the third quarter of 2024, with Kenanga as the principal adviser, sponsor, underwriter and placement agent for the IPO. With a track record spanning over 20 years, Vetece and its subsidiaries, deliver enterprise IT solutions to empower businesses to achieve their operational requirements. Vetece's client base primarily encompasses players in the telecommunication and financial services industries, reflecting the group's domain expertise. Major clients include Telekom Malaysia Bhd, Telstra Corporation Ltd in Australia, and banks in Malaysia. Source: BERNAMA News Agency