Kuala lumpur: Branding and marketing solutions specialist company SBS Nexus Bhd aims to raise RM30.63 million from its initial public offering (IPO) ahead of its listing on Bursa Malaysia's ACE Market on Jan 20, 2026.

According to BERNAMA News Agency, SBS Nexus plans to allocate RM7.1 million or 23.2 per cent of the IPO proceeds for its new headquarters, while RM7.25 million (23.7 per cent) will be directed towards company expansion. Additionally, RM0.74 million (2.4 per cent) will be used for branding, marketing, and promotional activities. The company also intends to allocate RM6.0 million (19.6 per cent) for repayment of borrowings, RM5.04 million (16.4 per cent) for working capital, and RM4.5 million (14.7 per cent) for estimated listing expenses.

Managing director and chief executive officer Wong Chun Mun highlighted the group's competitive advantage in providing a range of branding and marketing solutions to customers, enabling cohesive branding strategies. Wong emphasized that the company's diverse service offerings align with consumer trends and market demands, which is expected to fuel the continued growth of SBS Nexus Group.

SBS Nexus explained that the IPO consists of 171.5 million ordinary shares, comprising a public issue of 122.5 million new shares and an offer for sale of 49 million existing shares. This represents 35 per cent of the group's enlarged issued share capital of 490 million ordinary shares. Specifically, 24.5 million shares will be offered to the Malaysian public, and 17.15 million shares will be allocated to employees and contributors to the group's success.

Additionally, SBS Nexus stated that 61.25 million shares will be available through private placement to bumiputera investors approved by the Ministry of Investment, Trade and Industry, while 19.60 million shares are earmarked for private placement to selected investors. The offer for sale of 49 million shares will also be conducted via private placement to selected investors.

Based on an enlarged share capital of 490 million shares and an IPO price of 25 sen per share, SBS Nexus is projected to achieve a market capitalisation of RM122.50 million. The application for the public issue portion opens today and will close at 5 pm on Jan 7, 2026, with M and A Securities serving as the adviser, sponsor, underwriter, and placement agent for the IPO exercise.