KUALA LUMPUR (April 16): ASM Automation Group Bhd, a specialist in automation machinery solutions, entered an underwriting deal with M&A Securities as part of its initial public offering (IPO) exercise on the ACE Market.

ASM Automation did not provide a timeline for the listing. However, the group, which provides automation services focusing on the food and beverage (F&B) sector, must complete the IPO within six months of approval from Bursa Malaysia, which the company secured on Feb 20.

In a statement on Wednesday, ASM Automation said its IPO exercise entails a public issue of 128.34 million new shares, representing 24% of the group’s enlarged share capital, along with an offer for sale of 53.48 million existing shares, representing 10% of its enlarged share capital.

Under the agreement, M&A Securities will underwrite 37.44 million new shares made available to the Malaysian public and eligible persons under pink form allocations.

Additionally, 66.85 million new shares will be made available by private placement to Bumiputera investors and 24.06 million, representing 4.5% of enlarged share capital, for selected investors.

“This listing not only validates our growth journey thus far but also sets the stage for ASM Automation to scale up its impact across Malaysia and our overseas markets,” said managing director Chan Kok Heng.

ASM Automation, through its subsidiary Arrow Systems Sdn Bhd, provides full-service automation machinery solutions mainly in the F&B manufacturing sector, including converting raw ingredients into finished food products and streamlining packaging from primary to tertiary stages.

The group also offers equipment modification and upgrading services, maintenance services as well as components and spare parts supply.

Funds raised from the offering will go into expanding their production capacity, obtaining advanced machinery and intensifying their design and development efforts to support next-generation automation technologies, according to the group.

Their key markets span several countries in the Southeast Asian region as well as India, China and parts of Africa, according to the automation machinery specialist.

M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.

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