KUCHING: Sarawak-based telecommunications service provider, Reach Ten Holdings Bhd, is set to play a pivotal role in Sarawak’s ongoing digital transformation, as the state accelerates its digital economy initiatives.
With the implementation of the Sarawak Digital Economy Blueprint 2030 and the MyDIGITAL initiative, the company is aligning its growth strategy to complement Sarawak’s digital economy vision.
Its Managing Director, Leo Chin, said that as part of the company’s commitment to supporting Sarawak’s digital journey, Reach Ten will invest RM89.3 million (85.9 per cent) of the total proceeds raised from its listing exercise into expanding its telecommunications infrastructure.
This, he added, includes the construction of 100 new 4G and 5G telecommunications towers in Miri, Sibu and Bintulu over the next three years.
“These towers will be strategically located in urbanised cities like Miri, Sibu and Bintulu, which are key commercial and manufacturing hubs, to meet the growing demand for high-speed connectivity.
“These efforts will not only cater to immediate connectivity needs but also lay the foundation for Sarawak’s smart city initiatives, including intelligent traffic systems and digital services,” he said.
Citing an independent market research report, he noted that Sarawak will need 7,000 telecommunications towers to achieve 99.9 per cent Internet penetration by 2030.
As of the end of 2023, approximately 4,447 telecommunications towers had been built, with the remaining towers expected to be constructed by 2030.
Furthermore, during the company’s listing ceremony on the Main Market of Bursa Malaysia Securities Bhd, Chin said that with two decades of experience in building telecommunications infrastructure, the company will further expand its fibre-optic footprint in Kuching, and establish three new fibre-optic communication networks in Miri, Sibu and Bintulu.
In addition to terrestrial infrastructure, he stated that Reach Ten is enhancing its satellite capabilities to provide reliable last-mile connectivity, particularly in remote locations where fibre access remains a challenge.
He pointed out that over the past two decades, Reach Ten has been actively involved in major government-led digital initiatives, including JENDELA, SMART and SALURAN, ensuring secure, high-speed connectivity throughout Sarawak.
“As Sarawak continues its journey toward becoming a digital economy leader, Reach Ten remains committed to providing the resilient infrastructure and cutting-edge technology necessary for the state’s transformation.
“We are proud to be an integral part of Sarawak’s growth and are committed to building the digital backbone that will drive long-term socio-economic development,” he said.
Under its listing exercise, Reach Ten has raised RM104.0 million from its public issue of 200 million new shares at RM0.52 per share.
The listing also includes an offer for sale of 100 million existing shares to selected investors by way of private placement.
Of the total proceeds, RM60.0 million (57.7 per cent) will be allocated to expand its existing fibre-optic communication networks in Kuching, and to establish three new networks in Miri, Sibu and Bintulu.
A further RM25.0 million (24.0 per cent) will be used for the construction of an additional 100 4G and/or 5G telecommunications towers across Sarawak, particularly in Miri, Sibu and Bintulu, to support the state government’s initiatives to widen Internet coverage, especially in rural areas.
Part of the proceeds, amounting to RM4.3 million (4.1 per cent), will be used to enhance its satellite-based communication networks and service capabilities by acquiring additional mobile and fixed satellite terminals, hardware and software, as well as upgrading its teleport facilities.
The remainder of the proceeds will be used for working capital requirements (RM5.0 million or 4.8 per cent), repayment of bank borrowings (RM1.7 million or 1.6 per cent), and estimated listing expenses (RM8.0 million or 7.7 per cent).
Based on the enlarged share capital of 1.0 billion shares, Reach Ten is expected to have a market capitalisation of RM520.0 million after listing.
M & A Securities Sdn Bhd is the Principal Adviser, Underwriter and Placement Agent for the IPO exercise.
