Company Name: SBS Nexus Berhad

Date of Prospectus: 4 December 2025

SBS Nexus Berhad IPO: In-Depth Investor Analysis, Financials, Risks, and Market Outlook

Explore the SBS Nexus Berhad IPO with a thorough breakdown of its offer structure, financial performance, use of proceeds, industry positioning, risk factors, growth strategy, and outlook for investors. This analysis delivers all essential details for investors, analysts, and market watchers.

IPO Snapshot

SBS Nexus Berhad launches its IPO in Malaysia with a focus on branding and marketing solutions, offering a blend of offline and digital services. The IPO presents a compelling opportunity for investors seeking exposure to the rapidly evolving marketing sector.

• IPO Symbol: Not disclosed
• Offer Price: RM0.25 per share
• Total Offer Size: RM30,625,000 gross proceeds
• Shares Offered: 122,500,000 new ordinary shares
• Post-IPO Outstanding Shares: 490,000,000 ordinary shares

Use of Proceeds: Growth and Deleveraging Story

The IPO proceeds are earmarked for a diverse range of initiatives, signaling both aggressive expansion and prudent balance sheet management.

• Set-up of new headquarters: RM7.1 million (23.2%)
• Business expansion: RM7.25 million (23.7%)
• Branding, marketing and promotional activities: RM0.74 million (2.4%)
• Repayment of borrowings: RM6 million (19.6%)
• Working capital: RM5.035 million (16.4%)
• Estimated listing expenses: RM4.5 million (14.7%)

This balanced allocation indicates a dual focus: scaling operations and reducing debt for financial strength. The planned debt repayment is expected to yield annual interest savings of approximately RM0.4 million [[157]].

Dividend Policy

SBS Nexus Berhad does not have a formal dividend policy at present. Dividend payments remain at the discretion of the Board, with payouts contingent upon profits and available funds. The Board intends to recommend dividends to allow shareholders to participate in company profits, but future distributions will depend on the company’s earnings and capital requirements [[99]].

Investor Participation & Book Quality

Minimum public shareholding spread: At least 25% of the enlarged share capital must be held by a minimum of 200 public shareholders (each with not less than 100 shares) at the point of Listing [[21]].

Anchor/Institutional investors: Not disclosed.

Retail/Institutional oversubscription metrics: Not disclosed.

Pre-listing disposals/sales by shareholders: Not disclosed.

Deal Parties & Structure

• Principal Adviser, Sponsor, Underwriter, Placement Agent: M&A Securities [[39], [41]]
• Reporting Accountants/Auditors: TGS TW PLT [[41], [105], [151]]
• Solicitors: Ong Eu Jin Partnership [[41]]
• IMR: Smith Zander [[41]]
• Stabilization/Over-allotment (Greenshoe): Not disclosed

The underwriting agreement covers 41,650,000 issue shares. The structure and involvement of established parties suggest robust support for listing-day performance [[39]].

Company Overview

SBS Nexus Berhad is a branding and marketing solutions specialist, offering:

• Offline branding solutions: Out-of-home (OOH) media, public relations, event management, offline publications
• Digital branding solutions: Online marketing, digital broadcasts, video production, digital OOH media, online media, mobile and web-based apps, website development
• Business awards, recognition events, networking events for lead generation

Revenue Streams: Largely from Malaysia, with minor contributions from Hong Kong, Indonesia, Singapore, and Taiwan (collectively less than 1% of revenue, except Hong Kong at up to 3.9% in FYE 2023) [[49]].

Customer Segments: Entrepreneurs, micro-SMEs, SMEs, corporations.

Industry/Sector Size: Not quantified, but described as experiencing strong demand for integrated branding and marketing solutions [[4], [9]].

Financial Health: Multi-Period Performance

SBS Nexus Berhad has demonstrated strong financial growth and healthy margins across recent periods.

Liquidity is robust, with cash and bank balances of RM5.7 million as at LPD and sufficient working capital for at least 12 months post-IPO. Debt repayment from IPO proceeds will substantially reduce gearing to 0.02x [[85], [155]].

Market Position and Competitive Advantages

SBS Nexus Berhad boasts a diversified service portfolio and strong brand recognition, especially via its house brand ‘ShangHai’.

• ‘ShangHai’ contributed up to 29.7% of revenue in FYE 2022, though declining to 4.0% in FPE 2025 as events scaled down [[13]].
• Key industry competitors: Kingdom Digital Solutions, Business Media International, Sym World Innovation, MMM Group, SG Activamedia [[11]].
• Competitive factors include pricing, quality, range of offerings, and media partnerships [[9]].

Management Team

Promoters are disclosed to collectively hold 56.5% of the enlarged share capital post-IPO, enabling significant control over the company’s direction. Names and detailed biographies are not provided in the summary sections, but their substantial ownership and experience are emphasized [[22]].

Trends, Timing, and Environment

The branding and marketing industry in Malaysia is described as dynamic, with increasing digital adoption and strong demand drivers. Consumer engagement via mobile/web-based platforms, OOH advertising, and experiential marketing are cited as growth vectors [[4]].

• IPO Application Period: Opens 10:00 AM, 23 December 2025; closes 5:00 PM, 7 January 2026 [[172]].
• Listing Date: Not specified.
• Macroeconomic indicators: Market volatility is noted, but the company’s financials have not been materially impacted by inflation or interest rates in recent years [[97]].

Recent developments: Revenue continues to be driven by digital solutions; cost of sales is largely attributed to outsourced services and staff costs (over 75% of total) [[98]].

No seasonality or foreign exchange risk is observed.

Prospectus Deep Dive: Risk Factors

Key risk exposures include:

• Brand and reputation risk: Revenue from the ‘ShangHai’ brand is declining; adverse perception could impact future performance [[13]].
• Execution risk: Expansion strategies may require greater capital/operational expenditure than anticipated, impacting profitability if not managed effectively [[19]].
• Credit risk: Exposure to customer payment default [[19]].
• IPO listing risk: No prior market for shares; listing may be delayed or canceled if minimum public shareholding is not met [[21]].
• Promoter control risk: 56.5% post-listing control may result in decisions not aligned with minority shareholders [[22]].
• Interest rate risk: Major increases could raise finance costs [[97]].
• Related-party transactions: All conducted at arm’s length; no material litigation or contingent liabilities outstanding [[36], [87]].

Growth Strategy

SBS Nexus Berhad is pursuing aggressive expansion in both offline and digital branding, with capex allocated for new headquarters, studio equipment, IT infrastructure, and business growth initiatives.

• New headquarters and IT upgrades: RM7.77 million for renovation, equipment, and IT infrastructure [[87]].
• Business expansion: RM7.25 million allocated [[157]].
• Product development: Focus on mobile/web apps, website development, and digital OOH media [[53], [54]].
• Market entries: No major international expansion planned; current overseas revenue is minimal [[49]].

Capex pipeline is slated for deployment within 24 months post-listing.

Ownership & Lock-ups

Pre-IPO Shareholding: 367,500,000 shares

Post-IPO Shareholding: 490,000,000 shares

Promoter Holdings Post-IPO: 56.5%

Lock-in periods/ESOPs: Not disclosed

Valuation and Peer Comparison

Peer comparison metrics (P/E, P/B, EV/EBITDA, dividend yield, sector performance) are not disclosed in the document.

Research & Opinions

No analyst price targets or explicit research opinions are included in the prospectus.

IPO Allotment Result

Final subscription outcomes by tranche and implications for listing day are not provided.

Listing Outlook

Based strictly on the prospectus data, SBS Nexus Berhad’s IPO appears well-structured for growth and financial stability. The company’s robust revenue growth, healthy margins, strong interest coverage, and significant deleveraging from IPO proceeds suggest resilience and positive market sentiment.

Promoter control may result in substantial influence, but the balanced use of proceeds and diverse revenue streams mitigate risks. The absence of a formal dividend policy may deter income-focused investors, but the reinvestment in business expansion and technology upgrades supports long-term growth.

Given the strong financial fundamentals and sector tailwinds, first-day trading is likely to be robust, with the offer price of RM0.25 per share serving as a solid benchmark. Estimated trading strength should remain firm, potentially trading above the offer price, assuming favorable market conditions and successful book-building as inferred from the thorough underwriting and allocation process.

Prospectus Access

Website to obtain the prospectus: www.bursamalaysia.com

How to Apply

Application Channels:

• Brokers, banks, and e-IPO platforms
• Application window: 10:00 AM, 23 December 2025 to 5:00 PM, 7 January 2026
• Eligibility: Malaysian citizens (18+), corporations with majority Malaysian ownership, superannuation/co-operatives/foundations/pension funds in Malaysia
• Minimum application: 100 shares or multiples thereof
• CDS account required; only one application per category per applicant [[172], [173]]

For further details and step-by-step instructions, applicants should consult the official website above.