KUALA LUMPUR (Feb 22): Information technology (IT) software and platform provider ARB Bhd is considering spinning off its Internet of Things (IoT) business on Nasdaq in the US.

However, the details of the proposed listing have yet to be determined, it said.

In a bourse filing on Tuesday (Feb 22), ARB said the group’s subsidiary, which holds the IoT business to be listed, is envisaged to remain as a subsidiary after completion of the proposed listing.

"A detailed announcement in relation to the proposed listing will be made in due course pursuant to the Main Market Listing Requirements of Bursa Malaysia once the company has finalised and approved the structure of the proposed listing," it added.

The group will also obtain the necessary approvals from the relevant authorities, which include the US Securities and Exchange Commission, Bursa Securities and other relevant authorities for the proposed listing and shareholders’ approval at a general meeting to be convened.

ARB said one of the key benefits from the proposed listing on Nasdaq is that it will allow the group to promote clearer segregation of business responsibilities and operations for its existing IoT business, thereby enabling the management to efficiently allocate its resources to accelerate the expansion and growth of the IoT business.

Additionally, it will provide the group’s IoT business with direct access to a new fundraising platform, which would increase the financial flexibility for the IoT business to pursue its expansion and growth opportunities. It will also allow the IoT business to gain recognition from its own separate listing status.

In a separate statement, ARB executive director Datuk Seri Larry Liew Kok Leong said its IoT business has been gaining momentum over the last few years, which was shown in its latest results for the financial year ended Dec 31, 2021.

"The Covid-19 pandemic has escalated our growth trajectory by the surge in demand for our services. What we have experienced over the last two years is the shift towards digitalisation, which is expected to continue to gain momentum with the rollout of 5G and automation," he added.

At noon break, ARB shares were down 0.5 sen or 3.7% at 13 sen, bringing a market capitalisation of RM158.14 million. Its share price was down 7.14% year to date.