LITESPEED Education Technologies Bhd, bound for listing on Malaysian Exchange of Securities Dealings and Automated Quotation Bhd, plans to invest RM16.2 million on research and development (R&D) and regional expansion following its initial public offering(IPO).

“The IPO will give us the opportunity to build our capital and direct these funds towards developing and taking our core business to the next level,” said LET chief executive officer Pok Vic Tor.

Litespeed plans to re-invest a significant 78 per cent of its IPO proceeds (inclusive of a rights issue proceed).

Of this amount, RM7.7 million has been allocated for R&D, which will be used to increase the number of personnel, while the remaining RM8.5 million will be for business expansion.

The company plans to set up regional offices in Hong Kong, Vietnam and China within the next two financial years.

Litespeed is a regional e-learning provider involved in the design, development and distribution of e-learning products and services for the regional Asian market.

The company has spent an aggregate of RM5 million in R&D activities over the last three financial years.

Litespeed’s IPO, due to take place in the fourth quarter of this year, involves a public issue of 32.5 million new ordinary shares of 10 sen each at 47 sen apiece.

From that, about 4.2 million new shares will be made available for application by eligible directors, employees and business associates, while 5 million shares will be offered to the Malaysian public.

About 23.2 million new ordinary shares will be placed out to strategic investors.