KUALA LUMPUR (Jan 20): Piping company ISF Group Bhd saw the retail portion of its initial public offering (IPO) oversubscribed by 31.14 times ahead of its listing on the ACE Market on Jan 28.
The company received applications for 1.61 billion shares worth RM530.29 million from the Malaysian public, according to a statement on Tuesday.
The Bumiputera portion was oversubscribed by 17.78 times, and the public portion by 44.49 times.
Another 15 million shares set aside for eligible persons under the IPO were fully subscribed, said the family-run company which installs piping systems on industrial properties.
It added that a private placement of 85.30 million shares to selected investors had been fully placed out.
Additionally, the placement of 35 million shares and the offer for sale of 90 million shares to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry were also fully taken up.
The IPO is expected to raise over RM61 million for the piping company and close to RM30 million for its founding family. Priced at 33 sen per share, the offer involves a public issue of 185.3 million new shares and an offer for sale of 90 million existing shares.
ISF has said that it is setting aside about 19% of the funds to be raised from the 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.
The company 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, meanwhile, will be used as working capital to purchase materials for operations and pay subcontractors.
ISF managing director Jeff Ai Boon Chen said the company's outlook remains positive, underpinned by Budget 2026 initiatives that promote home ownership and drive demand for potable water and sewer piping infrastructure in residential developments.
"Additionally, the government’s push to strengthen digital infrastructure, including the establishment of the National AI Office to position Malaysia as a key player in the global digital economy, continues to support the outlook for data centres.
"Together, these trends are expected to underpin sustained demand and long-term growth for the business," Ai added.
As at Dec 9, 2025, ISF’s unbilled order book stood at RM120.68 million, of which RM117.47 million relates to end-user premises piping projects, and the remaining RM3.21 million to infrastructure piping projects. This is expected to provide earnings visibility to the company up to the financial year ending Dec 31, 2028.
Last year, ISF 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.
Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for this IPO exercise.