ICT Zone Asia Berhad IPO Evaluation

 IPO Details

Purpose of IPO
ICT Zone Asia Berhad aims to raise RM26.6 million through the issuance of 133 million new shares at RM0.20 each. The funds will be used as follows:

• RM21.0 million (78.95%) – Expansion of technology financing solutions (e.g., acquisition of ~4,000 laptops/desktops)

• RM1.5 million (5.64%) – Sales and marketing expenses

• RM4.1 million (15.41%) – Listing-related expenses

This is clearly a growth-driven IPO, focusing on scaling operations.

Oversubscription
The IPO was oversubscribed by 1.89 times, with the public portion alone oversubscribed 2.69 times, indicating strong retail interest.

 IPO Placement & Outstanding Shares

• Total shares offered: 154 million (133 million new + 21 million offer-for-sale)

• Offer price: RM0.20 per share

• Post-IPO market capitalization: RM159.09 million

The strong demand and affordable entry price suggest the stock is likely to perform positively on listing day.

 Institutional & Anchor Investors

• 21 million offer-for-sale shares were placed with Bumiputera investors approved by the Ministry of Investment, Trade and Industry.

 Investment Bankers & Sponsors

• Principal Adviser / Sponsor / Underwriter: Malacca Securities Sdn Bhd

• Joint Underwriter & Placement Agent: Kenanga Investment Bank

• Financial Adviser: SCS Global Advisory (M) Sdn Bhd

The participation of reputable underwriters is a positive signal for market confidence.

Company Overview

Business Model & Industry
ICT Zone Asia offers ICT solutions under an “Anything-as-a-Service” model, combining hardware leasing, cloud services, ICT trading, and support. Its key clientele includes government-linked companies, SMEs, and corporates.

Financial Health (FY2025)

• Revenue: RM127.8 million

• Net Profit: RM9.1 million

• Net Margin: 7.2%

• ROE: 16.3%

• Unbilled Order Book: RM261.2 million

Market Position
A hybrid player in technology + financial services, ICT Zone is one of few companies in Malaysia specializing in technology financing.

Management Team

• Lim Kok Kwang – Managing Director/CEO

• Ng Soon Kiat – Executive Director/COO

• Teh Siow Voon – GM, Admin & Finance

• Lau Yeo Chuan – AGM, Operations

• Cheah Chin Mon – Accountant

Market & Economic Factors

a. Sector Trends
Malaysia’s ICT sector is expanding, with demand in cloud computing, digital financing, and enterprise tech rising steadily. Government initiatives continue to support digitalization.

b. Timing of IPO
Launched: May 13, 2025
Listing: June 3, 2025
The timing is favorable, with rising appetite for tech-related stocks.

c. Economic Environment
Malaysia’s economy is on a recovery path. Budget 2025 allocated RM2.4 billion to digital infrastructure—a tailwind for ICT players.

d. News & Trends
The company is expanding sales channels, acquiring more assets for leasing, and targeting end-users (SMEs and corporates).

e. Market Conditions
Investor interest is strong. The tech sector has outperformed broader indices YTD.

f. Prospectus Analysis
The document highlights a scalable business model, healthy margins, and a strategic push into underserved SME markets.

g. Risk Factors

• Dependency on government contracts

• Customer concentration

• Inventory and credit risk due to financing model

h. Growth Strategy
Focus on:

• Expanding lease asset base

• Cloud service growth

• Cross-selling among existing government and SME clients

Ownership Structure (Post-IPO)

• Public: 16.72%

• Promoters (including ICT Zone Holdings Sdn Bhd): ~72.85%

• Lock-in: 6 months for promoters; 3 months for cornerstone investors

Peer Comparison

Research & Analyst Opinions

• Tradeview Research: BUY rating; target price RM0.29. Sees 25–40% CAGR growth potential through FY28.

• RHB Investment: Target price RM0.30; highlights strategic contracts and strong leasing pipeline.

• TA Securities: Conservative valuation of RM0.24 due to market volatility but acknowledges robust fundamentals.

 IPO Allotment Result

• Public Tranche Oversubscribed: 1.89x

• Positive response from institutional and Bumiputera investors

• Strong interest reflects investor confidence in growth potential

Investment Outlook & Price Prediction

Is it worth subscribing?
Yes. The company is profitable, asset-light, and growth-focused. Coupled with strong demand and government support for digital adoption, this IPO offers mid-to-long term potential.

First Day Trading Estimate
Offer price: RM0.20
Estimated range: RM0.24 – RM0.30
Expected direction: Strong to moderate upside, given peer performance and subscription rate.

Prospectus Download

ICT Zone Asia Berhad IPO Prospectus:
https://ictzone.asia/wp-content/uploads/2024/05/ICT-ZONE-ASIA-BERHAD-ANNUAL-REPORT-2024.pdf

Thank you