SBS Nexus Berhad

Date of Prospectus: 23 December 2025

SBS Nexus Berhad IPO: A Deep Dive into Malaysia’s High-Growth Branding & Marketing Specialist

Investors and market analysts are closely watching the SBS Nexus Berhad IPO, as the company brings over two decades of expertise in branding and marketing solutions to the ACE Market of Bursa Malaysia Securities Berhad. This comprehensive review details every aspect of the offering, financials, business model, risks, and outlook—equipping you to make an informed investment decision.

IPO Snapshot

IPO Symbol: Not disclosed

Offer Price: RM0.25 per share

Total Offer Size: 171,500,000 shares (Public Issue: 122,500,000 shares; Offer for Sale: 49,000,000 shares)

Post-IPO Outstanding Shares: 490,000,000

Market Capitalisation on Listing: RM122.5 million

IPO Price-to-Earnings (PE) Multiple: 16.1x (based on FYE 2024 PAT of RM7.6 million)

Application Window: Opens 23 December 2025, closes 7 January 2026. Balloting 9 January 2026. Allotment 16 January 2026. Listing date 20 January 2026.

Website for Prospectus Access: www.bursamalaysia.com

Offer Structure and Investor Participation

• Public Issue: 122,500,000 new shares (25% of enlarged share capital)
• Offer for Sale: 49,000,000 existing shares (10% of enlarged share capital)
• Placement Breakdown:
  • Malaysian Public (ballot): 24,500,000 shares (5%)
  • Eligible Directors, Employees, and Contributors (Pink Form): 17,150,000 shares (3.5%)
  • Bumiputera Investors (MITI-approved, private placement): 61,250,000 shares (12.5%)
  • Selected Investors (private placement): 19,600,000 shares (4%)
  • Selling Shareholders (Offer for Sale, private placement): 49,000,000 shares (10%)
• No Over-allotment/Greenshoe Option.
• Minimum Public Spread: At least 25% to a minimum of 200 public shareholders holding ≥100 shares upon listing.
• Moratorium: Specified shareholders’ entire post-IPO holdings are locked for 6 months; 45% remain locked for another 6 months, with max 1/3 per annum sale thereafter [[23]].

Use of Proceeds: Growth and Deleveraging

Gross Proceeds from Public Issue: RM30.6 million

This capital allocation signals a balanced growth-driven and deleveraging strategy, with substantial investment in infrastructure, business expansion, repayment of borrowings, and working capital enhancement.

RM12.3 million from Offer for Sale will accrue to selling shareholders and not the company.

Dividend Policy

• No formal dividend policy currently.
• Intention to pay dividends in future subject to financial performance, capex, and Board discretion.
• Historical Dividends Paid: FYE 2022: RM6.2m, FYE 2023: RM3.8m, FYE 2024: RM5.0m
• No dividends planned from LPD (25 Nov 2025) up to listing.

Deal Parties and Structure

• Adviser, Sponsor, Underwriter, Placement Agent: M & A Securities Sdn Bhd
• Issuing House: Tricor Investor & Issuing House Services Sdn Bhd
• No greenshoe or over-allotment option.
• Underwriting commission: 3.0% of IPO Price for 41,650,000 shares
• Placement Agent fee: 2.5% for shares placed out

The presence of reputable local investment banks and structured underwriting/placement arrangements suggest solid market support for the IPO.

Company Overview: SBS Nexus Berhad at a Glance

• Business Model: Investment holding company, operating via subsidiaries as a branding and marketing specialist
• Revenue Streams:
  • Offline Branding Solutions: Out-of-home media, public relations & event management, offline publications
  • Digital Branding Solutions: Online marketing, digital broadcasts, video production, digital-out-of-home media, online media, mobile/web apps, website development
  • Business Leads Generation: Networking and awards events
• Main Geography: Malaysia (majority of revenue)
• Largest Revenue Contributor: Digital branding solutions (58.4% to 59.5% of total revenue, FYE 2022-2025)

Key Competitive Advantages:

• 22 years of industry experience
• Established house brand “ShangHai”
• One-stop solution provider for branding and marketing
• Diverse customer base spanning micro-SMEs, SMEs, and corporates

Financial Health and Performance

The company has demonstrated strong revenue and profit growth, with prudent deleveraging post-IPO and efficient capital allocation.

Management Team

• Datuk Seri H’ng Bak Tee – Independent Non-Executive Chairman
• Wong Chun Mun – Managing Director/CEO
• Piah Yee Ling – Executive Director
• Warren Cheng – Executive Director/COO
• Wong Maw Chuan – Independent Non-Executive Director
• Datuk (Dr.) Hafsah binti Hashim – Independent Non-Executive Director
• Jancy Oh Suan Tin – Independent Non-Executive Director
• Lai Kian Chuan – Head of Digital
• Tay Mun Kit – CFO
• Lim Cheng Yong – Chief Business Officer
• Lee Soak Mun – Head of Sales

The management and promoter group retains significant shareholding post-IPO, underpinning alignment with investor interests.

Trends, Timing & Market Environment

Sector: Branding and marketing solutions, digital and offline, with Malaysia-focused revenue.

Industry Growth Drivers: Increasing demand for digital branding, SME market expansion, business awards/events as lead generators.

Timing: IPO scheduled for 20 January 2026, following a robust financial performance and industry momentum.

Macro Environment: The prospectus highlights stable economic conditions, government support for Bumiputera participation, and strong demand for digitalisation among SMEs.

Recent Developments: Expansion plans, new headquarters, technology upgrades, and targeted marketing for Malay-speaking SME segment.

Conclusion: The timing coincides with high sector demand and regulatory support, suggesting favorable listing conditions.

Risk Factors

• Brand/reputation risk: Reliance on “ShangHai” brand—damage could impact sales
• No long-term contracts: Revenue volatility and performance fluctuation
• Supplier dependence: Upward cost pressures could affect profitability
• Key personnel risk: Loss of senior executives may affect growth
• Regulatory/market risk: Subject to Malaysian law and Bursa Securities rules
• Liquidity risk: ACE Market may have lower liquidity than Main Market

These risks are mitigated by proven track record, diversified services, and management retention.

Growth Strategy

• Relocation to larger headquarters with purpose-built event and production facilities
• Investment in IT and production equipment for media creation
• Expansion into Malay-speaking SME market with tailored branding solutions (“MyUsahawanMedia”)
• Recruitment of 32 new employees for sales, content creation, and digital development
• Expansion of mobile/web applications and digital branding footprint
• Capacity building and technology upgrades to meet market demand

These initiatives are supported by clear timelines and allocated proceeds, indicating strong execution capability.

Ownership and Lock-up Arrangements

• Pre-IPO Shareholding:
  • Wong Chun Mun: 40%
  • Piah Yee Ling: 16%
  • Warren Cheng: 10%
  • Lai Kian Chuan: 20%
  • Alphabets Assets: 9%
  • Lim Cheng Yong: 5%
• Post-IPO Shareholding:
  • Wong Chun Mun: 30%
  • Piah Yee Ling: 12%
  • Warren Cheng: 4.5%
  • Lai Kian Chuan: 10%
  • Alphabets Assets: 6.7%
  • Lim Cheng Yong: 1.8%
• Lock-in/Moratorium: 6 months full lock, next 6 months 45% locked, staged release thereafter
• PINK Form Allocations for employees and contributors: 17,150,000 shares (3.5%)

Valuation and Peer Comparison

• IPO PE Multiple: 16.1x (FYE 2024 PAT)
• Pro forma NA/share post-IPO: RM0.08
• Dilution to new investors: 68.0% vs. pro forma NA/share

Listing Outlook

Based on strong revenue growth, prudent cash management, robust expansion plans, and significant promoter retention, SBS Nexus Berhad’s IPO appears attractive for investors seeking exposure to Malaysia’s branding and marketing sector. The structured placement to Bumiputera and retail investors, combined with underwriter and placement agent support, suggests likely healthy demand and liquidity upon listing.

Given the offer price of RM0.25 and sector momentum, first-day trading could open at or above the IPO price, with potential for a premium if oversubscription levels are high and market conditions remain favorable.

How to Access the Prospectus

Website to obtain prospectus: www.bursamalaysia.com

How to Apply

• Application Channels: Member companies of Bursa Securities, banks, investment banks, and Issuing House (Tricor)
• Application Window: 23 December 2025 (10:00am) to 7 January 2026 (5:00pm)
• Balloting: 9 January 2026
• Allotment: 16 January 2026
• Listing Date: 20 January 2026

Eligibility: Malaysian citizens, companies, co-operatives, societies, institutions incorporated or organised under Malaysian law.

SBS Nexus Berhad’s IPO presents a compelling opportunity powered by growth, digital transformation, and strong brand equity. Investors are encouraged to review all disclosed facts and use the official channels to participate within the stated application window.