SRKK AI targets RM20.48 million via IPO on ACE Market

Digital transformation solutions provider SRKK AI Berhad is targeting RM20.48 million in proceeds from its Initial Public Offering (IPO) on Bursa Malaysia's ACE Market. The company's Chief Executive Officer, Yew Lip Sin, attributes the IPO's drive to the growing enterprise adoption of AI solutions and the substantial potential within this market.

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We have successfully integrated AI into customer solutions and have seen increased usage since 2022.

He highlighted Microsoft's US$2.2 billion investment in Malaysia's cloud and AI infrastructure as a key indicator of the market's promise. AI-based solutions already contribute significantly to SRKK AI's revenue, accounting for 11% or RM11.8 million in the fiscal year ending December 31, 2025. Yew noted that companies are moving from AI exploration to implementation, evidenced by SRKK AI's successful integration of AI into client solutions since 2022.

The IPO proceeds are earmarked to bolster SRKK AI's "AI-first" strategy through two primary initiatives. Firstly, the company plans to establish an AI Lab, enabling clients to visualize digital transformation roadmaps and test solutions against their business challenges, and an AI Academy to cultivate local talent. Secondly, SRKK AI will focus on developing AI-powered data analytics and business intelligence solutions.

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This clearly shows that companies are moving from the AI exploration phase to the implementation phase.

Furthermore, SRKK AI intends to develop and own intellectual property for its software solutions, moving beyond its current practice of developing AI solutions for clients. The company is also working on a supply chain planning and forecasting platform integrated with AI analytics, designed to support demand forecasting and inventory replenishment for the manufacturing and food and beverage sectors. Additionally, they are developing solutions to help organizations monitor and report on Environmental, Social, and Governance (ESG) performance.

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First, we will establish an AI lab and an AI academy.

The IPO involves a public issue of 64 million new shares and an offer for sale of 13 million shares at 32 sen each. Funds will be allocated to strategic AI growth initiatives, expansion into Indonesia, construction of a Security Operations Centre, branding and marketing, working capital, and listing expenses. SRKK AI has also set a dividend policy targeting at least 20% of its consolidated net profit for distribution to shareholders.

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Second, SRKK AI will develop AI-based data analytics and business intelligence solutions.