KUALA LUMPUR (July 4): ISF Group Bhd, which mainly installs piping systems on industrial properties, has filed for an initial public offering (IPO) on the ACE Market seeking funds for expansion.

The family-run company plans to set up and expand operational facilities, including a new head office at its home base in Johor, according to its draft prospectus filed to Bursa Malaysia. Proceeds have also been earmarked to buy machinery and equipment as well as hire dozens of new staff.

ISF Group is also seeking to expand geographically by setting up one office in Selangor or Negeri Sembilan, and one in Penang to support project implementation in the central and northern regions of Peninsular Malaysia, it said.

“Our strategies and growth plans are centred on leveraging our core competencies and strengths in the supply and installation of piping systems for end-user premises as well as water supply and sewer infrastructure piping,” ISF Group said.

Co-founded by Ai Sew Fuat and his wife Lim Ay Yum at the end of 2000, ISF Group supplies and installs piping systems for end-user premises as well as water supply and sewer infrastructure piping. The company also provides maintenance and repair services for piping systems.

Both are executive directors, with Ai responsible for project execution while Lim is in charge of finances and administration. Their son, Ai Boon Chen, meanwhile is the managing director, overseeing corporate development, business development, and strategic planning functions.

Last year, the company made a net profit of RM9.64 million on the back of RM54.67 million revenue. More than 40% of its revenue came from its work at industrial sites, followed by data centres and residential properties at around 20% each. The rest came from commercial and other properties such as public infrastructure.

The proposed IPO involves public issue of 185.3 million new shares and an offer for sale of 90 million existing shares at a price to be determined later.

Under the public issue, 50 million new shares will be made available for application by the Malaysian public and 15 million shares set aside for eligible persons. The rest of the new shares will be allocated to select investors and approved Bumiputera through private placement.

Meanwhile, Ai, his wife, and son together will be putting up their 90 million existing shares for sale, which will cut and dilute their collective stake to about 72% post-listing.

Alliance Islamic Bank is the IPO’s principal adviser, sponsor, sole underwriter and placement agent.