VCI Global Limited has completed the spin‑off of its capital markets advisory subsidiary, V Capital Consulting Group (VCCG), valuing the new entity at US$168 million and retaining a 30 % equity stake in the standalone company. The move marks the first execution of the group’s dual‑track IPO strategy, which separates mature portfolio divisions from high‑growth technology businesses such as AI, GPU infrastructure and cybersecurity.
The decision to carve out VCCG follows a series of strong financial results. In Q4 2024, VCI Global reported revenue of US$27.8 million—up 41 % from the prior year—and net income of US$7.6 million. For the first half of 2024, revenue reached US$13.7 million, a 44 % year‑over‑year increase, while net income was US$5.4 million. The company projected full‑year 2025 revenue of US$47.3 million, a 70 % jump, underscoring the momentum in its core technology segments. The valuation of VCCG, at roughly 27 times VCI Global’s then‑market capitalization of US$6.22 million, highlights a perceived undervaluation of the parent’s assets and signals confidence in the subsidiary’s standalone prospects.
VCCG has long been a mature division that assists companies in navigating IPOs, with a track record that includes successful listings such as Founder Group Limited and YY Group Holding Limited. By spinning it off, VCI Global can grant VCCG greater operational autonomy, enabling it to pursue its own capital‑raising initiatives while the parent focuses on scaling its AI and GPU infrastructure businesses. The dual‑track IPO framework—track 1 for 100 % carve‑out IPOs of core tech units and track 2 for 30 % retained spin‑offs of mature divisions—provides a clear path for unlocking value across the group’s portfolio.
Management emphasized the strategic importance of the move. Group Executive Chairman and CEO Dato’ Victor Hoo said, “The spin‑off of VCCG at US$168 million valuation represents an important milestone as we align our structure with the Group’s long‑term strategic direction. Our dual‑track IPO strategy is designed to unlock value systematically while ensuring that VCI Global focuses on our highest‑growth technology verticals.” The announcement was well received by investors, reflecting confidence in the company’s focus on high‑growth sectors and its disciplined approach to capital allocation.
The spin‑off positions VCI Global to pursue additional carve‑outs of its technology divisions, such as V Gallant and Smart Bridge, while VCCG can independently pursue its own growth opportunities. The move also signals a broader shift toward a more streamlined, high‑growth business model, potentially setting the stage for future strategic initiatives in AI, GPU infrastructure and cybersecurity.
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