KUALA LUMPUR (Sept 12): AMS Advanced Material Bhd, a company trading in semi-finished aluminium and copper products, has announced plans to float its shares on the ACE Market of Bursa Malaysia to raise funds for its business expansion, including setting up a new manufacturing warehouse in Penang and distribution point in Kuantan.

The initial public offering (IPO) will see the company selling up to 26.14% of its enlarged share capital, according to the draft prospectus exposure filed with the stock exchange.

The exercise includes a public issue of 113 million new shares, including 30.6 million shares for the Malaysian public, 2.2 million shares for eligible persons, 76.5 million shares for Bumiputera investors approved by the Ministry of Investment, Trade and Industry, and 3.7 million shares for selected investors.

In addition, 47 million existing shares will be offered for sale to selected investors by substantial shareholder AMS Metal Group, which is controlled by managing director Keh Teng Yang (56% stake) alongside Tan Chee Yuen (20.5%), Lee Boon Kean (13.5%) and See Cherng Jye (10%).

This will enlarge AMS Advanced Material’s share capital to 612 million shares upon listing. Post-IPO, AMS Metal Group will retain a 73.86% stake in the company.

The IPO price per share and the resulting market capitalisation have yet to be determined at this stage.

Incorporated in 2023, AMS Advanced Material is principally involved in the trading of semi-finished aluminium and copper products as well as the processing of semi-finished aluminium products.

It operates mainly in Malaysia and Singapore, focusing on trading and processing activities such as shearing, tooling and rework to meet customer specifications, serving customers across the semiconductor, automotive, construction, aerospace and consumer goods industries.

The company intends to use the IPO proceeds for setting up a new licensed manufacturing warehouse plant in Penang to serve the semiconductor and engineering supporting industries, expanding into aluminium architectural products, opening a new distribution point in Kuantan, and venturing into the collection and processing of scrap aluminium materials.

Part of the funds will also go towards loan repayments, working capital and listing expenses.

AMS Advanced Material recorded a revenue of RM99.2 million for the financial year ended 2024 (FY2024), up from RM60.5 million in FY2023, while profit after tax rose to RM6.2 million from RM2.5 million. For the four months ended April 2025, revenue stood at RM64.9 million with a net profit of RM5.2 million.

The company’s risk factors include concentration on both ends of its value chain. One major customer contributed between 20% and 47% of sales over the last three financial years, while on the supply side, AMS Advanced Material relies heavily on two principal vendors for aluminium purchases.

In addition, AMS Advanced Material does not have long-term contracts with its customers, with sales largely dependent on recurring purchase orders.

M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO.