OGX Group Berhad

Date of Prospectus: 12 February 2026

OGX Group Berhad IPO: In-Depth Investment Analysis, Financials, and Strategic Outlook for 2026

OGX Group Berhad, an established IT infrastructure solutions specialist, is launching its IPO with a compelling mix of growth, profitability, and expansion potential. This comprehensive analysis decodes the offer structure, financials, strategic priorities, management, risks, and listing outlook for discerning investors and market watchers.

IPO Snapshot: OGX Group Berhad Listing on ACE Market

IPO Symbol: Not specified in the prospectus

Offer Price: RM0.35 per share

Total Offer Size: 225,000,000 shares (150,000,000 new Issue Shares + 75,000,000 Offer Shares)

Post-IPO Outstanding Shares: 750,000,000 shares

Use of Proceeds:

• Business expansion (including acquisition of new facility, brand portfolio expansion, and geographical growth): RM34.5 million
• Repayment of bank borrowings: RM4.5 million
• Working capital: RM8.5 million
• Estimated listing expenses: RM5.0 million

This allocation underscores a growth-driven story with prudent deleveraging through loan repayment and robust working capital plans [[61]].

Dividend Policy: The Board does not intend to declare dividends prior to listing. Historical payout ratios reached 57.57% and 58.79% for FYE 2024 and FYE 2025, respectively [[114]].

Minimum Public Spread: The IPO is structured to ensure at least 25% of post-IPO shares will be held by a minimum of 200 public shareholders [[219]].

Investor Participation and Book Quality

Anchor and Institutional Investors:

• Tranches for private placement to identified Bumiputera and institutional/selected investors total 93,750,000 shares (12.5% of enlarged capital).
• Offer for Sale directed at Bumiputera investors (75,000,000 shares).

Employee/Director Participation: 18,750,000 shares reserved via Pink Form Allocations for directors, employees, and contributors.

Book Quality Assessment:
The inclusion of significant allocations for institutional and Bumiputera investors, as well as a clear public balloting process, suggests a diversified and potentially robust investor base. The requirement for a 25% public spread with at least 200 shareholders further promotes initial trading liquidity. These factors, together with the underwritten public portion, indicate potential for strong first-day performance based on prospectus structure and allocation [[219]].

Deal Parties and Offer Structure

Principal Adviser, Sponsor, Underwriter, and Placement Agent:

• UOB Kay Hian Securities (UOBKH) serves as Principal Adviser, Sponsor, Underwriter, and Placement Agent [[42]].

Legal Adviser: Mah-Kamariyah & Philip Koh
Auditors/Reporting Accountants: Crowe Malaysia PLT
IMR: SMITH ZANDER
Internal Control Reviewer: Sterling Business Alignment Consulting Sdn Bhd

Underwriting:

• 56,250,000 Issue Shares underwritten by UOBKH [[212]].

Stabilization/Greenshoe: Not specifically disclosed.

Inferred Listing-Day Support: UOBKH’s multiple roles as principal adviser, sponsor, and underwriter (with no disclosed conflict of interest) suggest alignment and robust support for the IPO’s launch [[42]].

OGX Group Berhad: Business Model, Financials, and Strategic Position

Business Model: OGX Group Berhad is an IT infrastructure solutions specialist operating a brand-centric, B2B model. The company principally delivers:

• IT infrastructure solutions
• Distribution of IT infrastructure products
• Product warranties and support services

Revenue is primarily generated via partnerships with system integrators—companies engaged in the delivery of IT solutions to end-users. The group also acts as an authorized distributor for major IT brands, offering complementary value-added services [[67]].

Key Revenue Streams:

• Product sales (IT infrastructure equipment, software, related hardware)
• Professional services and support
• Brand principal incentives (performance-based)

Geographies: Operations are Malaysia-centric with plans for regional expansion.

Industry/Sector: IT infrastructure solutions and distribution sector. Industry size not quantified in the prospectus.

Financial Performance and Health

Cash Flow Position: The group reported strong operating cash flows, with net cash from operating activities climbing from a negative RM3.3 million in FYE 2022 to RM16.3 million in FYE 2025, and RM6.3 million in FPE 2026 [[98]].
Interest Coverage and Debt: Debt has been actively managed, with proceeds from the IPO earmarked to reduce term loans by RM4.5 million. Interest coverage has improved alongside profit growth [[105]].

Market Position:

• OGX is a brand-centric solutions provider with strong relationships with global IT brands.
• Its position as a trusted B2B supplier to system integrators provides recurring pipeline visibility.

Leadership and Management Team

Key Executives:

• Tan Ting Fong – Non-Independent Non-Executive Chairman
• Tan Suan Loong – Executive Director / Managing Director
• Poon Kaixin – Chief Financial Officer
• Ng Hsin Chung – Chief Technology Officer
• Ho Kwok Xheng – Chief Operations Officer
• Tan Su Ching – Chief People Officer

The group is founder-led, with substantial shareholdings retained by the Tan family post-IPO [[6]], supporting continuity and strategic alignment.

Sector Trends, IPO Timing, and Market Environment

Sector and Macro Trends:

• Digitalization, cloud adoption, and IT infrastructure upgrades in Malaysia drive steady demand for OGX’s solutions.
• No specific seasonality was observed in revenue streams.

IPO Timing:

• Application Period: Opens 10.00 a.m., 12 February 2026 and closes 5.00 p.m., 2 March 2026 [[215]].
• Listing Date: Not explicitly stated.

Recent Developments:

• Completion of internal reorganization, including the acquisition of OGX Networks (completed 31 December 2025), consolidates group structure ahead of listing [[59]].

Economic Backdrop: No macroeconomic commentary provided, but sector demand drivers are described as robust.

Market Conditions Outlook: The combination of recurring B2B demand, strong pre-IPO profitability, and an expansion-focused use of proceeds create a favorable environment for this IPO.

Prospectus Deep Dive: Risk Factors, Growth Strategy, and Ownership

Key Risk Factors

• Customer Concentration: Heavy reliance on system integrators and key brand principals. Any changes in these relationships could affect performance.
• Absence of Long-Term Contracts: Revenue is not secured by long-term contracts, introducing quarterly volatility and reduced future visibility [[96]].
• Implementation Delays: Project delivery can be hindered by end-user readiness or unforeseen IT environment changes [[96]].
• Related-Party Transactions: Transactions with directors and substantial shareholders occurred but were at prevailing market rates and not deemed detrimental to minority holders [[38]].
• Tax Rate: Effective tax rate remained high at 29.44%-38.37% over the periods under review, impacting net margins [[94]].

Growth Strategy

• Acquisition of New Facility: RM30 million of IPO proceeds to fund a new headquarters, experience center, and warehouse within 30 months [[61]].
• Expansion of IT Brand Portfolio: RM2.5 million earmarked for onboarding new authorized brands within 18 months, enhancing product breadth.
• Geographical Expansion: RM2 million allocated for regional business expansion within 24 months.
• Working Capital: RM8.5 million to scale operations and support anticipated growth.
• Deleveraging: RM4.5 million to repay bank borrowings, reducing interest expense and improving gearing.

Ownership and Lock-Ups

Lock-Up/ESOP: Pink Form Allocations of 18,750,000 shares are reserved for directors, employees, and contributors. No ESOP or employee share scheme beyond this is disclosed [[202]].

Valuation and Peer Comparison

P/E, P/B, EV/EBITDA, Net Margin, ROE, ROA, Dividend Yield: No direct peer comparison table or industry benchmarks are disclosed in the prospectus. These metrics are not provided for OGX or other listed companies, so no table is included.

Research Coverage and Analyst Opinions

No sell-side research, analyst price targets, or opinions are included in the prospectus.

IPO Allotment and Subscription Results

Final subscription levels by tranche are not disclosed.

Listing Outlook: Is OGX Group Berhad Worth Subscribing?

Based on robust financial growth, a clearly expansion-focused use of proceeds, prudent deleveraging, strong management continuity, and a diversified allocation structure, OGX Group Berhad’s IPO appears compelling for investors seeking exposure to Malaysia’s IT infrastructure growth story.

First-Day Trading Range Estimate (Inference): The presence of institutional, Bumiputera, and public investor allocations, combined with underwriting support, suggests the offer is likely to debut at or above the IPO price of RM0.35, with potential for immediate upside if overallotment is well-absorbed. The offer structure and financials support a positive, liquid opening.

How to Obtain the Prospectus

The full prospectus and detailed procedures for application and acceptance can be found at: bursamalaysia.com

How to Apply for OGX Group Berhad IPO Shares

Application Channels:

• White Application Form (for Malaysian Public: individuals and non-individuals)
• Electronic Share Application
• Internet Share Application (for individuals)
• Pink Application Form (for Eligible Persons: directors, employees, contributors)

Application Period: Opens 10.00 a.m., 12 February 2026 and closes 5.00 p.m., 2 March 2026.
Eligibility: Applications must conform to procedures and eligibility as outlined in the prospectus and forms. Late applications will not be accepted [[215]].

For further information on the IPO and application process, visit: bursamalaysia.com