KUALA LUMPUR (Dec 13): Bursa Malaysia ACE Market-bound Binasat Communications Bhd aims to raise RM39.55 million from its initial public offering (IPO) of new shares to finance the telecommunication support service provider's expansion.

Binasat said in its prospectus its tentative listing date is Jan 8, 2018. According to the prospectus, the group offers support services for satellite, mobile and fibre optic telecommunication networks.

Binasat said its planned expansion includes setting up a teleport and overseas expansion in Laos, Myanmar and Vietnam.

The company said RM14.36 million will be used to finance the teleport project while RM10.79 million will be used for working capital. The group has also allocated RM1.5 million to expand into Laos, Myanmar and Vietnam.

At Binasat's prospectus launch here today, its managing director Na Boon Aik said the company plans to set up new offices in Laos, Myanmar and Vietnam. Na said the plan is still "in discussion stages".

According to Binasat's prospectus, its IPO comprises a public issue of 85.98 million new shares and an offer for sale of 40 million existing shares at 46 sen each.

At 46 sen, Binasat's public issue of 85.98 million new shares will raise RM39.55 million for the company, its prospectus shows. The offer for sale of 40 million existing shares will raise RM18.4 million, which will accrue entirely to the offerors, according to the prospectus.