LONG-TERM EVOLUTION BOOST: Company to use proceeds from RM150m sukuk to expand ops
OCK Group Bhd, a network facility provider (NFP), will use the RM150 million raised from a sukuk programme to expand its operations.
Managing director Sam Ooi said yesterday the money will allow it to build new long-term evolution (LTE) sites and buy existing ones from other NFP operators,
OCK provides telecommunications network services and turnkey solutions to telco operators.
The company yesterday announced the issuance of the RM150 million Islamic medium-term notes, with a tenure of up to 20 years.
Ooi said OCK is in talks with various local parties to subscribe to the sukuk but nothing has been firmed up yet.
BNP Paribas is the principal adviser, lead arranger, syariah adviser and joint lead manager of the programme.
OCK currently operates 60 towers and is looking at increasing the number.
"The number of towers we will acquire or build will depend on clients' demand," Ooi said after the sukuk launch.
Previous reports said OCK - which counts DiGi.Com Bhd, Maxis Bhd, Celcom Axiata and U Mobile as its clients - planned to increase the sites to 300 by end-2014.
He said a three-legged tower will cost between RM250,000 and RM300,000, while a rooftop site will cost RM60,000.
The company is poised to benefit from the robust LTE rollout by telco providers.
"We are very positive that this will create more deployment work for us. We have received a pretty good demand from clients for rooftop sites and we expect this segment to grow by 10 to 20 per cent (in terms of revenue) this year," he added.
Listed on Bursa Malaysia's ACE Market in August 2012, OCK is also planning to move to the Main Market.
It reported a total net profit of RM22.36 million for financial years 2011 and 2012.