KUALA LUMPUR: Binasat Communications Bhd expects to raise RM5.8 mil via new shares placement to raise funds for a new data centre at its primary satellite ground station as well as for working capital.
In a filing to Bursa Malaysia today, it said that barring unforeseen circumstances, the proposed private placement is expected to be completed by the fourth quarter of 2020.
“The group intends to use RM4 mil for the installation of a new data centre at its satellite teleport facility. A data centre is a computing facility that acts as a centralised location to deliver and store shared applications and data,” it said.
It added that with the installation of a new data centre, the group would be able to handle a greater flow of data at a faster pace.
“The added capacity will enable Binasat’s customers to reduce downtime or minimise interruption. Further, the group also plans to capitalise on the new data centre to obtain more contracts for the provision of satellite support services,” it said.
Binasat also emphasised that satellite-based communications technology has gained much importance in the past few years, especially following the rollout of 5G network development.
In March 2019, Binasat expanded its business through the development of a new satellite teleport facility, which is expected to be completed in the third quarter this year.
A satellite teleport facility is the primary ground station of a satellite network that serves as the main connection point between the satellite and a terrestrial network such as the internet. – April 7, 2020, Bernama
