Binasat Communications Berhad successfully launches prospectus

The company is principally involved in the provision of telecommunication-supporting-services for satellite; mobile and fibre optic telecommunications networks.

Binasat Communications’ initial public offering (“IPO”) involves a total offering of up to 125.98 million ordinary shares of RM0.46 each (“IPO Shares”).

Managing Director of Binasat Communications, Na Boon Aik said, “Binasat Communications group of companies operates within the support services sector for the telecommunication network industry in Malaysia.

With a proven track record of more than 13 years, we have been serving all major Telco’s in Malaysia and telecommunication equipment suppliers.

Through its Public Issue, Binasat Communications aims to raise total gross proceeds of RM 39.55 million, of which approximately 36.3% of the proceeds will be utilised for setting up a teleport, approximately 12.4% of the proceeds will be utilised for enhancing the Company’s O&M services capability, and approximately 12.1% of the proceeds will be utilised to enhance fibre optic network installation and commissioning services capability.

Approximately 3.8% of the proceeds will be utilised for regional business expansion, particularly into Vietnam, Myanmar and Laos.

A further 27.3% of the proceeds will be utilised for enhancing the Company’s working capital, while the balance of 8.1% of the proceeds will be allocated to defray estimated listing expenses.