KUALA LUMPUR (Jan 8): ISF Group Bhd is now accepting applications for its shares at 33 sen per share from investors for its listing on the ACE Market.
The initial public offering (IPO) is expected to raise over RM61 million for the piping company and close to RM30 million for its founding family, according to the listing prospectus unveiled on Thursday. All in all, the IPO offers up to 28% of the company based in Pontian.
Applications for the IPO shares will close on Jan 14 and listing is scheduled for Jan 28.
ISF Group, which mainly installs piping systems on industrial properties, was co-founded by Ai Sew Fuat and his wife Lim Ay Yum at the end of 2000.
Both are executive directors, with Ai responsible for project execution while Lim is in charge of finances and administration. Their son, Jeff Ai Boon Chen, meanwhile is the managing director, overseeing corporate development, business development, and strategic planning functions.
The company is setting aside about 19% from the funds to be raised from the IPO’s public issue to set up and expand operational facilities, including a new head office at its home base. 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.
Nearly two-thirds of the IPO proceeds, however, will be used as working capital to purchase materials for operations and pay subcontractors.
Meanwhile, Ai, his wife, and son together will be putting up shares equivalent to about 9% of their combined stake for sale in the IPO. Following the listing, their collective stake will be reduced to about 72%.
Alliance Islamic Bank is the principal adviser, sponsor, sole underwriter and placement agent for the IPO.