KUALA LUMPUR: ARB Bhd has proposed to list its wholly-owned ARB IOT Group Limited on the Nasdaq Stock Exchange as a spin off exercise of its internet of things (IoT) business arm.
AIGL provides a wide range of IoT system services such as system integration and system support service.
According to its filing with Bursa Malaysia, ARB said the proposed listing would unlock the value of its investment in the IoT business and efficiently allocate resources to accelerate the expansion and growth of the business.
ARB executive director Datuk Seri Larry Liew Kok Leong said the listing would be a new milestone for the company.
"AIGL has a robust growth prospect given the evolving demand for new technology trends such as artificial intelligence (AI), cloud computing, robotic process automation, IoT and hyper-connectivity, which continues to gain momentum.
"To remain competitive in this fast-paced and ever-evolving industry, we need to invest strongly in the business operation, strategic acquisition and our research and development activities.
"The spin-off of our IoT business through a listing on the Nasdaq Stock Exchange will help to provide us with the funding to pursue these expansion and growth opportunities," he said.
ARB aims for the proposed to be completed by the fourth quarter this year.
Liew added that a successful listing of AIGL would allow the company to gain better recognition as a separate listing status, enhancing its corporate reputation, business profile and visibility which in turn will enable it to achieve greater market penetration.
"It is not just financial flexibility that we are looking at with the listing of AIGL.
"As a standalone entity, AIGL will achieve greater market penetration and a wider customer base," Liew said.
He also stated that the listing would widen AIGL's investor base via the participation of the global investing community, given the prominence of the Nasdaq Stock Exchange among global investors.
Proceed from the listing of AIGL will be for the strategic acquisitions and investment activities of the group, working capital and general corporate purposes, estimated listing expenses as well as research and development activities.