Tune Talk makes employees “co-owners” ahead of IPO, first Malaysian telco to do so

Tune Talk has announced something you don’t usually hear from a telco: it’s making its employees co-owners of the company, even before going public. The Malaysian mobile virtual network operator (MVNO) revealed that it has set up an Employee Share Trust Scheme (ESTS) as part of its preparation for a future Initial Public Offering (IPO).

Unlike standard employee share option schemes that usually kick in post-IPO, Tune Talk’s ESTS is being introduced ahead of listing. This move allows staff to directly benefit from the company’s growth instead of waiting until after it lists. The company says this is about giving employees a real stake in the value they’re helping to create now — not years down the line.

As part of the initiative, co-founder and CEO Gurtaj Singh Padda has voluntarily transferred 4.15% of Tune Talk’s total issued share capital into a dedicated Trust Fund for employees. The transfer was executed via a formal Trust Deed and the shares will be managed by appointed trustees.

Tune Talk claims it is the first telco in Malaysia to introduce an Employee Share Trust Scheme of this nature ahead of an IPO. According to Tune Talk, the ESTS is designed to let employees share in dividends or performance-based rewards before the IPO as well as provide financial support for employee welfare where needed. It’ll also act as a vehicle to distribute shares and subsidise share purchases under a future ESOS framework once the company lists.

“We know that employees today want to feel the impact of their hard work now, not years down the line. This Trust is our way of giving our people something real and tangible in return for the commitment they show every single day.

At Tune Talk, we don’t believe employee welfare ends with monthly pay or statutory contributions. This Trust is our way of giving our people a meaningful stake in the long-term value of the company they are building.

As we move towards an IPO, we are deliberately putting structures in place that allow our employees to grow financially alongside the business, rather than being left behind once value is created,” Gurtaj Singh Padda, Tune Talk CEO

Read more of our articles below!