Shah Alam, Malaysia-based OMS Group, a company which installs and maintains submarine cable systems mainly for telecom corporations in Asia-Pacific, is mulling a listing at the Kuala Lumpur stock exchange as soon as next year with expectations to raise as much as 1.34 billion ringgit ($300 million), Bloomberg News cited insiders. The company is working with at least three banks on the potential initial public offering (IPO) and is seeking a valuation of over $1 billion based on strong earnings growth and increased spending among telecommunications operators on digital infrastructure, the report said. The company has narrowed down the location…
Shah Alam, Malaysia-based OMS Group, a company which installs and maintains submarine cable systems mainly for telecom corporations in Asia-Pacific, is mulling a listing at the Kuala Lumpur stock exchange as soon as next year with expectations to raise as much as 1.34 billion ringgit ($300 million), Bloomberg News cited insiders.
The company is working with at least three banks on the potential initial public offering (IPO) and is seeking a valuation of over $1 billion based on strong earnings growth and increased spending among telecommunications operators on digital infrastructure, the report said.
The company has narrowed down the location for the IPO to Malaysia after originally also considering Australia, Hong Kong and Singapore for a listing. Details of the offering and its timing have not been determined yet.
Largest IPO in Malaysia in over a year
Should the share sale take place, it would be the largest in Malaysia in more than a year after Malaysian- home improvement retailer MR DIY Group’s $363-million listing in October 2020, according to data compiled by Bloomberg.
OMS Group has been expediting plans for an IPO following the company’s recent private funding rounds in which there has been continued interest from investors who seek to tap the potential of ambitious undersea cable projects in Asia.
Strong spending on digital infrastructure
Technology and telecommunications firms are spending increasingly on digitalisation in the region which sparks demand for respective infrastructure. Last year, Google and Facebook joined a new subsea cable system for 2024 dubbed Apricot, linking Japan, Singapore, Taiwan, Guam, the Philippines and Indonesia. Nippon Telegraph & Telephone Corporation will build a 10,000-kilometer cable linking Japan to California, the company announced earlier in July.
OMS Group, with offices in Malaysia, Singapore and Indonesia, has done subsea cable installation and maintenance projects for the past three decades, including the Papua New Guinea National Submarine Fiber Cable Network and the South-East Japan Asia Japan Cable System 2, according to its website.
The company owns a fleet of large cable-laying and repair ships for subsea cable installation and maintenance projects which are conducted through the group’s unit Optic Marine Services International.
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