PETALING JAYA: MM Computer Systems Bhd (MMCS) has entered into an underwriting agreement with Malacca Securities Sdn Bhd in conjunction with its proposed initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.

In a statement, the information technology (IT) solutions provider said its IPO involves the issuance of 119.00 million new ordinary shares, representing approximately 20.99% of the group’s enlarged issued share capital.

Additionally, there will be an offer for sale of 47.34 million existing shares, representing 8.35% of the enlarged share capital.

“The proceeds raised from the public issue are expected to be utilised for the procurement of IT hardware and software, workforce expansion and capability development, repayment of bank borrowing and to defray listing expenses,” said the company.

Malacca Securities Sdn Bhd has been appointed as the principal adviser, sponsor, underwriter, and placement agent. SCS Global Advisory (M) Sdn Bhd has been appointed as the corporate finance adviser for the exercise.