OGX Group Berhad IPO's Analysis
OGX Group Berhad
OGX Group Berhad is an IT infrastructure solutions specialist operating with a brand-centric, business-to-business (B2B) model. The Group is principally involved in providing comprehensive IT infrastructure solutions, which includes the design and implementation of network solutions, cybersecurity solutions, and enterprise data centre solutions. Additionally, the company engages in the distribution of IT infrastructure products, product warranties, and support services, primarily transacting with system integrators who serve end-users across various industries in Malaysia. The Group carries and supports a portfolio of 18 established brand-specific IT infrastructure products from principals for whom it is an authorised distributor.
IPO Details
Market:
ACE
Principal Adviser:
UOB Kay Hian (M) Sdn Bhd
Issuing House:
Tricor Investor & Issuing House (TIIH)
Shariah Status:
SC (Yes)
Listing Price:
0.35
MITI allocation?:
Yes
Closing Date:
02-Mar-2026
Balloting Date:
04-Mar-2026
Listing Date:
12-Mar-2026
Oversubscription rate:
10.11x
Average Analysts FV
:
TA (0.37), Apex (0.46), Mplus (0.50), Public Invest (0.41), Mercury (0.429), RHB (0.51)
iSaham IPO Score
:
Market Cap:
262.50 M
Number of Shares:
750.00 M
( info)
Median Sectors PE:
- Technology (22.5)
- Technology Equipment (31.0)
Median Peers PE:
Strategic Overview & Data Visuals
Utilisation of Proceeds
| Purpose | Amount (RM'000) | % | |
|---|---|---|---|
| Expansion | Acquisition and renovation of our Group’s new facility | 30,000 | 57.14 |
| Expansion | Expansion of our Group’s portfolio of IT infrastructure brands | 2,500 | 4.76 |
| Expansion | Geographical business expansion | 2,000 | 3.81 |
| Working capital | Working capital | 8,500 | 16.19 |
| Listing expenses | Estimated listing expenses | 5,000 | 9.53 |
| Debt | Repayment of bank borrowings | 4,500 | 8.57 |
| Total | 52,500 | 100 | |
Comparable Companies (Peers Similarity)
| Company | % | Source | Note |
|---|---|---|---|
| VSTECS | 65 | AI | Distributor (consumer electronics + enterprise infrastructure) |
| INFOTEC | 40 | AI | System Integrator (Networking, Cybersecurity, Data Centre physical infrastructure) |
| CLOUDPT | 20 | AI | System Integrator (Software, Cloud, and IT Service Management like ServiceNow, primarily for Tier-1 Banks) |
Analyst Highlights
| Date | Analyst Highlights |
|---|---|
|
03-Mar-2026
Mercury |
|
|
02-Mar-2026
Apex |
|
|
02-Mar-2026
Mplus |
|
|
02-Mar-2026
Public Invest |
|
|
02-Mar-2026
RHB |
|
|
27-Feb-2026
TA |
|
Utilisation of Proceeds
Business Segments
Geographical Segments
Major Customers
Revenue by Financial Year Ended
Profit After Tax (PAT) by Financial Year Ended
Revenue by Financial Period Ended
Profit After Tax (PAT) by Financial Period Ended
SWOT Analysis
Strengths
- High-Margin Hybrid Model: Achieves an 8.7% net margin, significantly higher than pure distributors like VSTECS (~2%), by bundling design and implementation services with hardware sales.
- Diverse Brand Portfolio: Acts as an authorized distributor for 18 global principals like HPE-Aruba and Sangfor, creating a competitive moat as customers cannot easily bypass them for direct purchases.
- Broad Customer Base: Serves 610 System Integrators with the top customer contributing less than 10% of revenue, indicating low customer concentration and counterparty risk.
- Strong Technical Team: Employs 56 engineers out of 127 staff, validating its position as a value-added solutions specialist rather than a simple hardware trader.
Weaknesses
- Slowing Revenue Growth: Top-line growth decelerated sharply to just 2.2% in FY2025 from over 40% in the preceding two years, raising concerns about market saturation or project delays.
- Low Recurring Income: The business model is reliant on one-off purchase orders, lacking long-term maintenance contracts which results in low future earnings visibility beyond the current order book.
Opportunities
- Data Centre Spillover: The boom in hyperscale data centers is creating downstream demand for enterprise-level data centre infrastructure, a key market segment that OGX services.
- Vietnam Expansion: A joint venture for DTCT modular data centres provides a strategic entry into the high-growth, relatively untapped data centre market in Vietnam.
- Cybersecurity Mandates: New regulations like the Cyber Security Act 2024 are expected to compel corporations to increase spending on cybersecurity, directly benefiting OGX's second-largest business segment.
Threats
- Foreign Exchange Risk: Purchases are primarily in USD while sales are in RM. Rapid currency fluctuations can compress margins on fixed-price quotes if not managed effectively.
- Principal Dependency: Over 60% of purchases are from its top three principals (HPE, Sangfor, Vertiv). The potential loss of a key distributorship would severely impact the business.
- Inventory Obsolescence: Operating in the fast-paced technology sector, holding inventory for an average of 44-79 days carries a significant risk of products becoming outdated or superseded.
Key Highlights
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Conclusion
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