Intention to Float on AIM
CSF Group, a leading provider of data centre services in South East Asia, is pleased to announce its intention to float on AIM via a placing of new shares.
The Group is raising around £28m through Cenkos Securities, its broker and NOMAD and upon Admission, will have a valuation of approximately £85m.
Background to CSF Group
The economies of South East Asia are growing strongly. This growth and the rapid increase in the penetration of data-intensive, web-based services in the region are driving the growth of the data centre industry. Regional and multinational businesses need ever-greater data centre capacity to handle the traffic generated by businesses and consumers in Malaysia and neighbouring countries.
CSF has a leading position in the Malaysian data centre industry where it focuses on data centre design, development and construction, as well as the operation and management of its properties. The Group offers a range of highly flexible, scalable, data centre services to domestic Malaysian, South East Asian and large international businesses.
Since 1991, the Group has been involved with the build and fit-out of over 200 data centres in Malaysia for clients including government-linked organisations, financial institutions, technology companies and telecommunications companies.
In 2003, the Group completed the development and build of its own high specification commercial data centre, named CX1, in Cyberjaya, a dedicated technology park located close to Malaysia’s capital city, Kuala Lumpur. In January 2009, the Group completed the development of a much larger data centre, known as CX2, which is also located in Cyberjaya At over 157,000 net sq. ft., the Directors believe, it is currently the largest high-end carrier neutral commercial data centre in South East Asia.
The Group generates income from the rental of data centre facilities and from maintenance services. CSF also generates profits from the development of its own facilities and from the development of data centres for customers. The Group now has a number of Malaysian and high profile multinational customers.
Reasons for Admission on AIM
CSF intends to build upon its position as a leader in the South East Asian Market. The Group plans to expand its data centre portfolio in Malaysia and neighbouring countries
A significant portion of the proceeds of the Placing will be used to finance the development of its next data centre, CX5, a new 201,000 net sq. ft. facility in Cyberjaya. CX5 will set a new standard for technical specification and power density and is expected to meet the standards of the most demanding international customers.
A smaller portion of IPO proceeds is to be spent on expansion into Thailand and Vietnam, with the remaining proceeds to be used for general working capital purposes.