Kuala Lumpur: Information technology (IT) services provider, TechStore Bhd (TechStore) has signed an underwriting agreement with M and A Securities Sdn Bhd for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia. TechStore is scheduled to be listed on the ACE Market next month.

According to BERNAMA News Agency, the company stated that the IPO will involve a public issuance of 125.0 million new shares, representing 25.0 per cent of its enlarged share capital, alongside an offer for sale of 25.0 million existing shares, representing five per cent of its enlarged share capital. Out of the 125.0 million shares, 25.0 million will be made available to the Malaysian public through balloting, and another 25.0 million shares will be allocated via pink form allocations to eligible directors, employees, and others who have contributed to TechStore's success.

A total of 62.5 million shares will be offered through private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry. The remaining 12.5 million shares will be offered via private placement to selected investors.

TechStore's managing director, Tan Hock Lim, expressed that the IPO is set to unlock new opportunities, providing resources and flexibility to foster the company's growth and expansion. He emphasized that the agreement signifies a step closer to the company's impending listing on the ACE Market of Bursa Securities. Tan reiterated the company's dedication to enhancing operational efficiency and supporting businesses in their digital transformations, aiming to empower them with essential tools to remain competitive and resilient in the digital age.

M and A Securities will serve as the principal adviser, sponsor, sole underwriter, and placement agent for the IPO.