ARB to spin off its IoT Business via a listing on NASDAQ

● Its IoT-business arm, ARB IoT Group Restricted (“AIGL”) would allow the Group to unlock the worth of its funding within the IoT enterprise and effectively allocate sources for its subsequent part of development
● AIGL Group has constructed up an IoT growth ecosystem to assist clients seize alternatives introduced by new digital applied sciences with 4 enterprise strains in IoT section.
● The proposed itemizing is anticipated to be accomplished tentatively by 4Q 2022, barring any unexpected circumstances and is topic to all required approvals.

KUALA LUMPUR, MALAYSIA – Media OutReach – 12 August 2022 – Principal Market-listed data know-how (“IT”) software program and platform supplier ARB Berhad (“ARB” or “Group”) proposes to checklist ARB IOT Group Restricted (“AIGL”), an oblique wholly-owned subsidiary of ARB Berhad on the NASDAQ Inventory Trade as a spin-off train of its IoT enterprise arm (“Proposed Itemizing”).

AIGL gives a variety of IoT system companies, reminiscent of system integration and system help service. A submitting with Bursa Malaysia at this time exhibits that the Proposed Itemizing will unlock the worth of its funding within the IoT enterprise and effectively allocate sources to speed up the growth and development of its IoT enterprise.

ARB Berhad Govt Director Dato’ Sri Larry Liew Kok Leong (拿督斯里刘国良) stated: “This Proposed Itemizing will likely be a brand new milestone for the Group. AIGL has a strong development prospect given the evolving demand for brand spanking new know-how developments reminiscent of Synthetic Intelligence (AI), cloud computing, robotic course of automation, Web-of-Issues (IoTs) and hyper-connectivity, which continues to achieve momentum.

Pushed by beneficial components reminiscent of fast urbanisation, a proliferation of know-how and cellular units and a shift from conventional agriculture to IoT agriculture in ASEAN nations, AIGL goals to be one of many prime IoT gamers within the ASEAN area, notably in agriculture, property growth and logistics industries. “We intend to arrange a regional hub for IoT know-how in Singapore to help this initiative,” Dato’ Sri Larry stated.

“To stay aggressive on this fast-paced and ever-evolving trade, we have to make investments strongly within the enterprise operation, strategic acquisition and our analysis & growth actions. The spin-off of our IoT enterprise by means of a list on the US NASDAQ Inventory Trade will assist to offer us with the funding to pursue these growth and development alternatives.”

Dato’ Sri Liew additionally added {that a} profitable itemizing of AIGL on the NASDAQ Inventory Trade will permit the Group to achieve higher recognition as a separate itemizing standing, enhancing its company popularity, enterprise profile and visibility which in flip will allow it to attain better market penetration.

“It’s not simply monetary flexibility that we’re with the itemizing of AIGL. As a standalone entity, AIGL will obtain better market penetration and a wider buyer base,” Liew stated.

He additionally identified that the AIGL’s investor base could possibly be widened by means of the participation of the worldwide investing neighborhood, given the prominence of the NASDAQ Inventory Trade amongst international traders.

As for ARB, it will unlock the worth of its funding by means of the share providing train underneath the Proposed Itemizing, thus enhancing the worth for its shareholders.

AIGL expects to proceed to ship worthwhile development, generate sturdy money circulate, and return capital to shareholders whereas sustaining a robust steadiness sheet. The Firm will proceed to prioritise alternatives by collaborating with the potential M&A targets to increase its geographical presence by making the most of cross-border enterprise alternatives from 2022 onwards.

The submitting with Bursa additionally exhibits that AIGL has constructed up an IoT growth ecosystem to assist clients tackle the challenges and alternatives of recent digital applied sciences. Accordingly, AIGL Group has been organised into 4 enterprise strains: IoT Sensible Dwelling & Constructing, IoT Sensible Agriculture, IoT System Growth, and IoT Gadget Distribution.

It added that the proposed utilisations of the proceed from the itemizing of AIGL on the NASDAQ Inventory Trade will likely be for the strategic acquisitions and funding actions of the Group, working capital and normal company functions, estimated itemizing bills and analysis & growth actions.

Going ahead, Dato’ Sri Liew shared that the Group is in an excellent place to increase its enterprise regionally and can speed up the growth of its IoT enterprise by gaining new market share. Other than that, AIGL will increase its buyer base by rising its direct gross sales pressure and regional gross sales channels in new markets. The Firm may also push in direction of operational enchancment to drive earnings development, increase margin and enhance cashflow.

Barring any unexpected circumstances and topic to all of the required approvals being obtained, the Board of ARB expects the proposed itemizing of AIGL on the NASDAQ Inventory Trade to be accomplished by the fourth quarter of 2022.
Hashtag: #ARB

The issuer is solely accountable for the content material of this announcement.

About ARB Berhad

ARB Berhad (“ARB” or “Firm”) is integrated in Malaysia underneath the ACT in October 1997 and was listed on the Principal Market of Bursa Malaysia Securities Berhad in February 2004.

The Firm is primarily an IT software program and platform supplier firm.

It’s enterprise operates predominantly in two (2) enterprise areas:
1. Enterprise Useful resource Planning (“ERP”) – designing and reselling of customised ERP options
2. Web of Issues (“IoT”) – built-in options within the methods, engineering, procurement, commissioning, and administration of IoT methods

Its experience lies in empowering companies by means of digital transformation and know-how integration