SBS Nexus Bhd Takes Bold Step: Planning an IPO on the ACE Market for Expansion
KUALA LUMPUR (June 23)—In an exciting move poised to elevate its profile in the competitive branding landscape, SBS Nexus Bhd, a specialist in branding and marketing solutions, is preparing for an initial public offering (IPO) on the ACE Market of Bursa Malaysia. This strategic decision aims to raise essential funds for significant business expansion, including establishing a new headquarters, repaying borrowings, and enhancing working capital.
Unveiling the IPO Details
According to the draft prospectus submitted to Bursa Malaysia, SBS Nexus intends to issue a remarkable 122.5 million new shares and offer 49 million existing shares, totaling 171.5 million shares—equivalent to a substantial 35% of the company’s enlarged issued share capital of 490 million shares.
Share Allocation Breakdown
- 24.5 million shares earmarked for the Malaysian public
- 17.15 million shares designated for eligible directors, employees, and key contributors to SPS Nexus’s success
- 61.25 million shares reserved for Bumiputera investors, approved by the Ministry of Investment, Trade and Industry (Miti)
- 19.6 million shares directed toward select investors through private placements
Funds from the existing shares will benefit shareholders of SBS Nexus—including its managing director and CEO Wong Chun Mun, executive director Piah Yee Ling, executive director and COO Warren Cheng, head of digital Lai Kian Chuan, chief business officer Lim Cheng Yong, and Alphabets Assets—who collectively own 100% of the company. Post-listing, their shareholding interest will reduce to 65%, signaling a strategic transition toward broader market participation.
A Comprehensive Suite of Branding Solutions
SBS Nexus excels in delivering both offline and digital branding services. The company’s offline offerings include:
- Out-of-home media services
- Public relations and event management
- Offline publications
On the digital front, SBS Nexus provides:
- Online marketing services
- Digital broadcasts
- Video production
- Mobile and web-based applications
- Website development
Additionally, the company hosts business awards and networking events to generate leads and create branding opportunities for clients.
Financial Performance Growth: A Stellar Trajectory
SBS Nexus has consistently demonstrated growth in its financial performance. Over the past three years, the company’s profit after tax (PAT) has steadily escalated. For the fiscal year ending December 31, 2024 (FY2024), SBS Nexus reported a PAT of RM7.6 million, marking a 37% increase from RM5.56 million in FY2023, up from RM1.58 million in FY2022. Likewise, the revenue surged by 50%, climbing to RM29.92 million in FY2024 compared to RM19.95 million in FY2023 and RM11.6 million in FY2022.
In FY2024, digital branding solutions played a crucial role, contributing to 57.4% of total revenue, while offline branding solutions accounted for 37.3%, and business lead generation initiatives made up 5.3%. Notably, the company currently lacks a formal dividend policy, indicating a focus on reinvestment and growth.
Expert Guidance for the IPO Journey
To navigate this exciting IPO venture, M&A Securities Sdn Bhd serves as the sole adviser, sponsor, underwriter, and placement agent. Their expert guidance will undoubtedly play a crucial role in ensuring the successful launch of SBS Nexus on the ACE Market.
Conclusion
SBS Nexus Bhd is on the brink of a transformative journey toward expansion and innovation. With a diverse portfolio of branding solutions and a strong financial performance, the company is well-positioned to make significant strides in the market. The upcoming IPO not only reflects ambitious growth plans but also affirms SBS Nexus’s commitment to engaging with a wider audience. Stay tuned to witness how this branding powerhouse evolves in the highly competitive landscape of digital and offline marketing.
For further insights into the branding industry, explore this source or this guide for statistics on market trends and branding strategies.
