E-LEARNING solutions provider Litespeed Education Technologies Bhd plans to use RM16.2mil or 78% of the proceeds from its initial public offering (IPO) for regional expansion, and research and development (R&D). 

The company is expected to raise RM20.55mil from the IPO and rights issue, which involve an issuance of 32.5 million new ordinary shares of 10 sen each at an issue price of 47 sen. 

Of the RM16.2mil for investment, RM8.5mil will be channelled towards business expansion, including the setting up of regional offices in Hong Kong, Vietnam and China, within the next two years. 

The balance would go towards R&D, chief executive director Pok Vic Tor said after the launch of the company's prospectus in Kuala Lumpur yesterday. 

Pok said Litespeed, with market presence in Malaysia, Singapore, Indonesia and Hong Kong, planned to penetrate Vietnam and Thailand next year and China the following year. 

“About 30% of the countries in the world have their information and communications technology plans and allocations in their education systems.  

“That give us some indication that the market to be tapped is still huge,” he said. 

In the financial year ended April 30, 2005, the company posted a pre-tax profit of RM6.9mil and revenue of RM16mil. 

The company is expected to be listed on the Mesdaq market on Nov 24. – Bernama