ARB Bhd (previously Aturmaju Resources Bhd) which is a leading provider of Internet of Things (IoT) and information technology (IT) solutions in Malaysia is contemplating to list its IoT business on the US Nasdaq Stock Market.
A filing with Bursa Malaysia today shows that the proposed listing aims to elevate the group’s IoT business by leaps and bounds over the next few years.
“Our IoT business has gained momentum over the last two years as evident in our latest results for FY2021 ended Dec 31, 2021,” commented ARB’s executive director Datuk Seri Larry Liew Kok Leong.
“The COVID-19 pandemic has escalated our growth trajectory by the surge in demand for our services. What we have experienced over the last two years is a shift towards digitalisation which is expected to continue to gain momentum with the roll-out of 5G and automation.”
To ensure that the Main Board listed ARB is able to serve the surging demand of its IoT services, the group is weighing options to gain funding for expansion and better allocation of its resources, according to Liew.
“Among one of the proposals that the board raised was to consider the listing of our IoT business on the Nasdaq,” he pointed out. One of the key benefits from the proposed Nasdaq listing is to promote clearer segregation of business responsibilities and operations for the group’s existing IoT business.
Fund raising platform
“This would enable the management to efficiently allocate its resources to accelerate the expansion and growth of the IoT business,” suggested Liew. “The growth trajectory of our IoT business is expected to be significantly higher than other business units which could create a disproportionate allocation of resources.”
As such, the listing of ARB’s IoT business unit this will enable an efficient allocation of resources within the group to cater for the growth expansion of the IoT business segment.
Moreover, a Nasdaq listing also provides ARB’s IoT business with direct access to a new fund-raising platform which would increase the financial flexibility of the group’s IoT business to pursue its expansion and growth opportunities.
“As a globally recognised stock exchange, a Nasdaq listing would also help the group’s IoT business to gain recognition and enhance its corporate reputation,” justified Liew. “A listing on the Nasdaq will further put ARB on the world map and enhance our corporate reputation, business profile and visibility.”
This eventually plays a vital role to achieve greater market penetration and a wider customer base. This is especially true for businesses that involve multinational corporations, according to Liew.
Above all else, the listing of ARB’s IoT business division on Nasdaq will add value for the company’s shareholders.
“At the same time, this also helps to widen the investor base of the group through the participation of the global investing community. This is important to provide more resilient performance for its shareholders,” added Liew.
Currently, details of the propose listings have yet to be determined but the group’s IoT business division is on track to meet Nasdaq’s financial requirements.
ARB will obtain the necessary approvals from the relevant authorities which includes the US Securities and Exchange Commission, Bursa Malaysia Securities Bhd and other relevant authorities as well as shareholders’ approval at a general meeting to be convened later.
At 2.54pm, ARB was unchanged at 13.5 sen with 7.69 million shares traded, thus valuing the company at RM164 mil. – Feb 22, 2022
