KUALA LUMPUR: Sedania Innovator Bhd, which wholly owns IDOTTV Sdn Bhd, is seeking to raise funds through a listing on the ACE Market of Bursa Malaysia, which will be used for capital expenditure (capex) to fund growth. According to a draft prospectus on Securities Commission Malaysia website, Sedania said it is proposing to issue 51.47 million new shares at an issue price yet to be determined.

Out of the total shares, nine million will be available for application by the Malaysian public, one million will be available for its directors and eligible employees, while the remaining 41.47 million will be allocated by way of private placement. “A total of 22.2% of the proceeds from the initial public offering (IPO) will be utilised for capex and 22.8% as marketing expenses. Some 13.9% has been allocated for research and development (R&D) expenses, 28.9% for working capital, and the remaining 12.2% for listing expenses.”

Sedania is a mobile solutions services provider, and through IDOTTV provides ancillary services to mobile subscribers by partnering service providers such as mobile network operators and utility companies for their infrastructure and gateway. Its principle product is “ATS Solutions”, a mobile sharing solution for the transfer of airtime credit from either prepaid or post-paid mobile subscribers to other prepaid subscribers within the same network at any time and place.

“At present, our airtime sharing (ATS) Solutions are available in Malaysia on Celcom (Celcom Airtime Transfer and Celcom Airtime Request) and Maxis (Maxis 2 Transfer) networks,” Sedania said in the draft prospectus, adding that its ATS Solutions are also available in Bangladesh with Robi Axiata, under the product name “Quickshare”.

Celcom subscribers are currently the major revenue contributor to Sedania, which has provided its services using Celcom’s infrastructure and gateway since 2004, a contract that will expire on Oct 7, 2015.

Azti Dian Fitriyanti Azmi is Sedania’s chief executive officer; Rizaizin Hashim Mohammed is chief financial officer and Datuk Noor Azrin Mohd Noor is managing director.

“We also intend to aggressively promote our ATS Solutions in the new markets. Our group is exploring various channels to market our services to users, while meeting the regulations set by the local authorities,” it said.

 For the financial year ended Dec 31, 2013, Sedania posted a net profit of RM6.91 million on revenue of RM9.93 million. Profit after tax margin stood at 69.6% ,while its earnings before interest, taxes, depreciation and amortisation margin stood at 74.3%.

This article first appeared in The Edge Financial Daily, on November 25, 2014.