From left: Mercury Securities Sdn Bhd head of corporate finance Eric Chong, Colform Group Bhd independent non-executive directors Tan Vun Su and Noor Ilienna Rahayu Ibrahim, non-independent executive director Kang Phui Ting, MD Kang Ket Hung, non-independent non-executive director Kang Ah Hin, non-independent executive director Kang Phui Yie, independent non-executive chairman Datuk Ali Ahmad Hamid, independent non-executive director Tan Kung Ming, and Mercury Securities MD Chew Sing Guan
KUALA LUMPUR (Feb 10): Shares of steel products maker Colform Group Bhd (KL:COLFORM) rose 11% in its trading debut on the ACE Market after a share sale that raised over RM60 million.
Colform opened at 40 sen apiece compared to its initial public offering (IPO) price of 36 sen apiece. The stock traded at 38 sen as of 9.05am, giving the company a market capitalisation of RM228 million, as trading volume totalled over 40 million shares.
At the closing bell, Colform’s shares were up three sen or 8.3% to 39 sen, valuing the company at RM234 million.
Colform is bucking weak market conditions in Malaysia and Asia amid broader investor concerns over the US’ latest 25% tariff on steel and aluminium imports, as well as escalating US-China trade tensions.
Demand for Colform’s shares during its IPO was strong, with the public portion oversubscribed by close to 42 times. Shares set aside for eligible persons were also fully subscribed while private placements of both new and existing shares were also fully taken up.
Colform is primarily based in Kota Kinabalu, Sabah, catering to the East Malaysian market. The company specialises in the manufacturing and processing of steel products, in addition to trading building materials.
The company also offers supply and installation services for its steel products, while also delivering comprehensive project management services for construction ventures.
Colform’s public issue raised RM41.19 million, of which RM18.09 million has been earmarked for working capital and RM9 million to set up a colour coil coating production line at its Kota Kinabalu factory.
The company has allocated RM5.1 million for expansion into Peninsular Malaysia, which includes the establishment of a branch office and the leasing of a factory in Klang, RM4.5 million for the construction of a storage facility in Kota Kinabalu, with the remaining RM4.5 million to cover listing expenses.
The offer for sale of existing shares, meanwhile, raised RM19.44 million for the selling shareholder Kang Ming Trading Sdn Bhd, owned by the Kang family under patriarch Kang Ah Hin, who serves as a non-executive director of Colform.
Mercury Securities Sdn Bhd is the sole principal adviser, sponsor, underwriter and placement agent for the IPO.
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