ARB Berhad is a Malaysian technology company that provides IT software and platform services and is listed on Bursa Malaysia. The company recently spin-off ARB IOT LTD (ARBB) and rasied USD 5 Millions IPO on Nasdaq. This event marks them as the fourth Malaysian issuer to list on Nasdaq since 2022.
What is Corporate Spin-Off ?
Corporate spin-off refers to the process of separating a subsidiary or division of a company into a new, independent entity. While the new entity operates independently, it is still managed by the same management team, and be allowed to present its financial information independently from the parent company.
Why ARB IOT Group Limited Spin-Off From Its Parent Company?
1. Drive Higher Stock Prices
Separating a subsidiary from its parent company enables investors to evaluate its financial performance and potential independently, leading to a potentially higher stock exchange valuation by eliminating the influence of the parent company’s other businesses.
2. Simplify Business Operations and Drive Greater Brand Success
By becoming an industry leader and focusing solely on its core business, it allows them to streamline their operations and improve efficiency and profitability. This creates an attractive proposition for new stakeholders and drives profits, without being hindered by unrelated operations
3. Unlocking Potential
Focusing solely on developing and commercializing a unique product or technology can enable a subsidiary to demonstrate its capability of successfully bringing innovative products or technology to market, which can attract additional investment and partnerships.
ARB IOT Group's CEO
Dato' Sri Larry Liew Kok Leong
According to ARB IOT Group’s CEO, Datuk Seri Larry Liew Kok Leong, the company intends to become the top IoT player in the ASEAN region, using its listing on NASDAQ to fuel its growth.
“We believe that being listed on NASDAQ, a globally recognized stock exchange, will not only leverage our listing status but also enhance our business profile and visibility.”
Additionally, he mentioned that ARB IOT Group will prioritize opportunities by focusing on strategic acquisitions to expand their international presence.
Corporate spin-off can be used as a strategy to explore other stock markets with various benefits. If you’re interested, please don’t hesitate to reach out and contact us !