KUCHING: Reach Ten is strengthening its SpaceX-linked strategy through a RM4.2 million investment.
The Sarawak-based telecommunications service provider said it invested USD1,000,080, or approximately RM4.2 million, through AAF4 Class A-4 Participating Shares, a fund managed by Alta Fund Management.
Reach Ten Holdings Berhad, listed on Bursa Malaysia under stock code 5332, said the fund gives investors indirect economic exposure to a portfolio of underlying assets, including Space Exploration Technologies Corp, or SpaceX.
Based on information provided by the fund manager, Reach Ten’s investment gives it an estimated indirect exposure equivalent to about 4,167 SpaceX shares, which is expected to increase to about 20,835 shares following SpaceX’s recently completed five-for-one stock split.
The group said the investment was made at an estimated entry price of USD240 per share, equivalent to about USD48 per share on a post-split basis.
Based on SpaceX’s IPO reference price of approximately USD135 per share, the indicative value of the underlying exposure would be approximately USD2.81 million.
Reach Ten said all valuation figures were indicative and remained subject to confirmation by the fund manager, including carried interest, fees, allocation adjustments and IPO settlement mechanics.
The group said the move complements its existing commercial relationship with SpaceX through Starlink and reinforces its commitment to the satellite communications sector.
Reach Ten managing director Leo Chin said the investment reflected the group’s confidence in the long-term growth potential of the global space economy and satellite communications industry.
“SpaceX has transformed the satellite communications landscape through Starlink and continues to be at the forefront of innovation in aerospace, connectivity and space technologies.
“As a company focused on delivering connectivity solutions, we see strong long-term opportunities arising from the continued expansion of satellite-enabled communications worldwide.
“This investment enables Reach Ten to gain exposure to one of the world’s most innovative technology companies while complementing our existing role within the Starlink ecosystem.
“It aligns with our strategy of creating long-term shareholder value while strengthening our position within the evolving telecommunications and satellite connectivity value chain,” he said.
Reach Ten Communication Sdn Bhd, a wholly owned subsidiary of Reach Ten, is an authorised distributor of Starlink services in Malaysia.
The role enables the group to provide Starlink satellite broadband solutions to enterprise, government and industrial customers nationwide.
Reach Ten said the appointment had strengthened its ability to deliver reliable high-speed connectivity to underserved and remote locations, including rural communities, offshore oil and gas facilities, maritime operations and other areas where traditional terrestrial infrastructure may be limited or unavailable.
“The emergence of low-Earth orbit satellite technology is reshaping how people, businesses and governments connect.
“Through our role as an authorised Starlink distributor and our investment exposure to SpaceX, Reach Ten is well positioned to participate in the long-term growth of the satellite communications industry while creating value for our stakeholders,” Chin added.
The group said the investment represented an opportunity to gain exposure to the fast-growing global space economy and frontier technology sectors through a structured investment platform.
It said the platform provides access to high-growth private companies that are typically inaccessible to regional investors.
