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ARB to spin off its IoT business via a listing on Nasdaq

INFORMATION technology software and platform provider ARB Bhd has proposed to list indirect wholly-owned subsidiary ARB IOT Group Ltd (AIGL) on the Nasdaq Stock Exchange as a spin-off exercise of its Internet-of-Things (IoT) business arm.

AIGL currently provides a wide range of IoT system services such as system integration and system support service. A filing with Bursa Malaysia yesterday (Aug 13) shows that the proposed listing will unlock the value of ARB’s investment in the IoT business while efficiently allocate resources to accelerate the expansion and growth of its IoT business.

“This proposed listing will be a new milestone for the group,” commented ARB’s executive director Datuk Seri Larry Liew Kok Leong.

“AIGL has a robust growth prospect given the evolving demand for new technology trends such as artificial intelligence (AI), cloud computing, robotic process automation, IoT and hyper-connectivity which continues to gain momentum.”

Driven by favourable factors such as rapid urbanisation, a proliferation of technology and mobile devices and a shift from traditional agriculture to IoT agriculture in ASEAN countries, AIGL aims to be one of the top IoT players in the ASEAN region, particularly in the realms of agriculture, property development and logistics industries.

As such, s spin-off of the group’s IoT business through a Nasdaq listing will be able to provide the much needed funding to pursue these expansion and growth opportunities.

“To remain competitive in this fast-paced and ever-evolving industry, we need to invest strongly in the business operation, strategic acquisition and our research & development activities.”

Additionally, a successful AIGL listing on Nasdaq will allow ARB to gain better recognition as a separate listing status which should enhance the group’s corporate reputation, business profile and visibility which in turn will enable it to achieve greater market penetration.

“It’s not just financial flexibility that we are looking at with the listing of AIGL. As a standalone entity, AIGL will achieve greater market penetration and a wider customer base,” envisages Liew.

Above all else, AIGL’s investor base could be widened through participation of the global investing community given Nasdaq’s prominence, hence enabling ARB to unlock the value of its investment through the share offering exercise under the proposed listing, thus enhancing the value for its shareholders.

AIGL expects to continue to deliver profitable growth, generate robust cash flow, and return capital to shareholders while maintaining a strong balance sheet. In so doing, it will continue to prioritise opportunities by collaborating with potential merger and acquisitions (M&A) targets to expand its geographical presence by taking advantage of cross-border business opportunities from 2022 onwards.

At the close of yesterday’s (Aug 12) trading, ARB was unchanged at 12 sen with 2.71 million shares traded, thus valuing the company at RM146 mil. – Aug 13, 2022


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