KUCHING: Sarawak-based telecommunications service provider, Reach Ten Holdings Bhd, is set to expand its fibre optic infrastructure across Sarawak.
It will be backed by proceeds from its upcoming RM104.0 million initial public offering (IPO) on the Main Market of Bursa Malaysia Securities Bhd.
From the IPO proceeds, RM60.0 million (57.7 per cent) has been earmarked to strengthen the company’s existing fibre optic communication network in Kuching, and establish new networks in Miri, Sibu and Bintulu.
According to its Managing Director, Leo Chin, the entire expansion will be carried out within a 36-month timeline.
He noted that, in accordance with IPO fund requirements, Reach Ten must fully utilise the proceeds within three years.
“We have submitted our wayleave applications to the Sarawak Multimedia Authority (SMA).
“Some proposed network links have already received approval, while others are still pending.
“Even though the deployment period is three years, it won’t stop us from starting on day one.
“Actual progress, however, depends on contractor availability and final green lights from authorities,” he said.
He said this during a press conference after Reach Ten’s prospectus launching ceremony at the Waterfront Hotel here today.
Following this, he shared that Reach Ten owns and operates a fibre optic communication networks infrastructure in Kuching and Samarahan.
It spans approximately 217 kilometres of fibre optic duct infrastructure and approximately 649 kilometres of fibre optic cable link communication networks, which took nearly 14 years to develop.
“It was painstaking. But now, with the IPO proceeds, we have the resources to get it done in three years.
“There will definitely be challenges in execution, but with over 14 years of experience, we are ready,” Chin said.
Citing recent rollouts to Kenny Hill Residence and Tower 33 next to CityOne, Chin said that the company rolled out its fibre based on the potential of new developments.
“Be it enterprise, be it consumer, or even government, as long as you are within our coverage, we will go for them,” he said.
On the strategic focus, he added that while Reach Ten plans to concentrate on Sarawak in the short term, the IPO provides the platform to explore further expansion opportunities.
“For the next two to three years, we’ll be focused on Sarawak, where we already see room for growth.
“There are still areas like Sibu, Miri, and Bintulu where we need to extend our fibre infrastructure. The IPO proceeds will be key in driving this expansion,” he said.
The IPO is open for subscription until 18 April 2025, with Reach Ten’s listing tentatively scheduled for 2 May 2025.
