Reach Ten to see more fibre, telecommunications tower contracts in Sarawak over next three years - Borneo Post Online (2025)

KUCHING (April 9): Telecommunications service provider Reach Ten Holdings Berhad aims to expand its fibre optic network and build 100 new 4G and 5G towers across Sarawak following its listing on the Main Market of Bursa Malaysia Securities Berhad on May 2.

The Sarawakian company expects to raise RM104 million from its initial public offering (IPO) with the issuance of 200 million new shares at 52 sen per share.

Managing director Leo Chin said the company plans to develop three new fibre optic communication networks and roll out 100 additional towers in Miri, Sibu, and Bintulu over the next three years from its listing date.

“We have already submitted our wayleave applications to the Sarawak Multimedia Authority (SMA). Some have been approved, some are still pending.

“Once we get the green light, we will begin work provided contractors are available,” he told a press conference following the launch of its prospectus here today.

Chin added that the mix of 4G and 5G towers deployed in Miri, Sibu, and Bintulu will depend on market demand.

“Digital Nasional Berhad (DNB) recently completed its first 5G test rollout and we were part of the deployment. We hope DNB will release more sites for service providers like us. UMobile is also rolling out its 5G services, so there’s plenty of room for us to grow.

“However, if mobile network operators want to expand their 4G coverage or capacity, we’re ready to support that as well.”

On the decision to proceed with the IPO despite market uncertainties in light of the US tariffs, M&A Securities Sdn Bhd deputy head of corporate finance Danny Wong said the move is crucial to fund projects supporting Sarawak’s digital development.

“In terms of timing, Reach Ten would like to expedite the fundraising prospects and our investors actually understand this situation and are committed to support the IPO.

“Therefore, despite the market uncertainties now, we are proceeding so that Reach Ten can have the funds to actually expedite the projects that are of importance to the state,” he said.

Chin added the IPO will also help the company raise its profile and prepare for projects outside Sarawak.

However, he stressed that Reach Ten is currently focused on its home market to help meet the state’s goal of connecting underserved and newly-developed areas.

“At present, we have no coverage in Sibu, Miri, and Bintulu. The IPO will keep us busy over the next three years with our fixed-line services.

“In Sarawak alone, there are already 5,000 towers. The government wants 7,000 to ensure full coverage. So, we see a lot of room to grow here first,” he said.

From the IPO proceeds, RM60 million will be used to expand the company’s fibre optic network in Kuching and to build new networks in Miri, Sibu, and Bintulu.

Another RM25 million will go toward constructing 100 new 4G and 5G towers, while RM4.3 million will be used to upgrade satellite communication services through the purchase of terminals, hardware, software, and facility improvements.

The company currently operates 217km of fibre optic ducts and 649km of cable networks in Kuching and Samarahan.

Reach Ten’s market capitalisation is projected to be RM520 million after listing, based on its enlarged share capital of one billion shares.