Malaysia’s Green Packet looks to raise $23m through private placement to fund cloud business
Green Packet has announced plans to raise between US$14.9 million (RM62.51 million) and US$23 million (RM98.94 million) to fund their cloud business.
The Malaysia-based telecommunications provider revealed in a statement it would issue 120.21 million new shares, or just under 11% of its current share capital, at RM0.52 sen per share.
From the proceeds raised, Green Packet will use US$596,587 (RM2.5 million) for daily operations of its cloud business. The remaining US$22.9 million will be used to buy the necessary IT infrastructure.
Green Packet also expects to invest approximately US$19 million (RM80 million) in the first year of their cloud business venture and US$47.7 million (RM200 million) in the following four years.
“It is a big advantage for Green Packet to diversify into cloud computing business as this gives us an upper hand to offer better and comprehensive solutions to our customers,” said Puan Chan Cheong, the Group Managing Director and CEO of Green Packet.
The cloud computing business will be a key strategic pillar of Green Packet’s overall play in the digital and technology ecosystem to enable the creation of a digital nation in Malaysia and further afield.
Green Packet intends to focus on providing services like Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) for its customers.
“In the coming years, the adoption of cloud computing will experience rapid growth across various industries especially with the convergence of next generation technologies such as 5G, artificial intelligence, and internet-of-things,” added Mr. Cheong.
Green Packet received approval from shareholders to diversify their offerings by including cloud computing services during their Extraordinary General Meeting in July 2020.
Make cloud-first happen in Malaysia
Adopting and migrating to cloud technologies is becoming a top priority for many organisations in Malaysia.
The Government has been active in encouraging cloud adoption by creating a data exchange hub for ministries and plans for smart cities. As a result, the cloud computing market in the country is expected to be worth US$3.7 billion by 2024, growing at a rate of 13% per year.