02-05-2025
Sarawak-based Reach Ten lists on Main Market at 52 sen
Chin (fifth right) is seen with other directors from Reach Ten and M&A Securities during the listing on the Main Market of Bursa Malaysia today.
KUALA LUMPUR (May 2): Sarawak-based telecommunications service provider Reach Ten Holdings Berhad (Reach Ten) successfully listed on the Main Market of Bursa Malaysia today, opening at 52 sen per share.
Under its listing exercise, Reach Ten has raised RM104 million from its public issue of 200 million new shares at 52 sen per share. The listing also includes an offer for sale of 100 million existing shares to selected investors by way of private placement.
This affirms the group's pivotal role in Sarawak's ongoing digital transformation as the state accelerates its digital economy initiatives.
Managing director Leo Chin said Reach Ten will invest RM89.3 million or 85.9 per cent of the total proceeds raised from the listing exercise into expanding its telecommunications infrastructure.
This includes the construction of 100 new 4G and 5G telecommunications towers in Miri, Sibu, and Bintulu, over the next three years.
'These towers will be strategically located in urbanised cities like Miri, Sibu, and Bintulu, which are key commercial and manufacturing hubs, to meet the growing demand for high-speed connectivity.
'These efforts will not only cater to the immediate connectivity needs but also lay the foundation for Sarawak's smart city initiatives, including intelligent traffic systems and digital services,' he said after the listing ceremony.
According to an independent market researcher report, Sarawak will need 7,000 telecommunication towers to achieve 99.9 per cent internet penetration by 2030.
As of the end of 2023, approximately 4,447 telecommunication towers have been built, with the remaining telecommunications towers expected to be constructed by 2030.
Speaking to reporters after the company's listing ceremony, Chin said with two decades of experience in building telecommunications infrastructure, the company will further expand its fibre-optic footprint in Kuching and establish new fibre-optic communications network infrastructure in Miri, Sibu, and Bintulu.
In addition to terrestrial infrastructure, Reach Ten is enhancing its satellite capabilities to provide reliable last-mile connectivity, particularly in remote locations where fibre access remains a challenge.
Founded in 2005, Reach Ten has been at the forefront of bridging the digital divide in both urban and rural areas of Sarawak. The company provides comprehensive connectivity solutions for businesses, government bodies, and the telecommunications industry, with a focus on infrastructure expansion and technological innovation.
Over the past two decades, Reach Ten has been actively involved in major government-led digital initiatives, including Jendela, SMART, and Saluran ensuring secure, high-speed connectivity throughout Sarawak.
'As Sarawak continues its journey toward becoming a digital economy leader, Reach Ten remains committed to providing the resilient infrastructure and cutting-edge technology necessary for the state's transformation.
'We are proud to be an integral part of Sarawak's growth and committed to building the digital backbone that will drive long-term socioeconomic development,' said Chin.
Of the total proceeds, RM60 million (57.7 per cent) will be allocated to expand its existing fibre optic communication networks infrastructure in Kuching and to establish new fibre optic communication networks infrastructure in Miri, Sibu, and Bintulu.
A further RM25.0 million will be used for construction of the additional 100 4G and/or 5G telecommunication towers across Sarawak, particularly in Miri, Sibu, and Bintulu to support the state government initiatives to widen internet coverage and connectivity, especially the 4G and 5G coverage to rural areas.
Part of the proceeds amounting to RM4.3 million (4.1 per cent) will be used to enhance its satellite based communication networks and service capability by acquiring additional mobile and fixed satellite terminals, hardware and software as well as enhancing its facilities in the teleport.
The remainder of the proceeds will be used for working capital requirements amounting to RM5 million (4.8 per cent); RM1.7 million (1.6 per cent) to repay bank borrowings while the remaining RM8.0 million (7.7 per cent) to defray the estimated listing expenses.
Based on the enlarged share capital of 1.0 billion shares, Reach Ten is expected to have a market capitalisation of RM520 million after listing.
M&A Securities Sdn Bhd is the principal adviser, underwriter, and placement agent for the IPO exercise.
