KUALA LUMPUR (July 9): Brand experience solutions provider Colony Group Bhd is seeking a listing on the ACE Market of Bursa Malaysia to raise funds for business expansion.

According to its draft prospectus filed with Bursa Malaysia, the initial public offering (IPO) comprises a public issue of 162.5 million new shares and an offer for sale of 32.5 million existing shares via private placement to selected investors.

The exercise will result in 195 million shares, or 30% of the company's enlarged issued share capital of 650 million shares being placed out to investors.

Of the 162.5 million new shares, 32.5 million shares will be made available to the Malaysian public, while 16.25 million shares will be set aside for eligible directors, employees and persons who have contributed to the company; the remaining 113.75 million shares will be placed out to selected investors.

Following the IPO, its largest shareholder, 57 Capital Sdn Bhd — the investment vehicle controlled by managing director and chief executive officer Lim Chong Hooi — will see its stake diluted to 42% from 60%, while Delican Sdn Bhd, controlled by executive director and chief financial officer Mah Jon Van, will have its shareholding reduced to 28% from 40%.

Headquartered in Damansara, Colony Group provides integrated marketing solutions encompassing the design, development, implementation and management of experiential marketing and digital marketing solutions. The company was incorporated in July 2019 as Colony Capital Bhd, before adopting its current name in December 2025.

The group intends to use the IPO proceeds to establish a new office in Petaling Jaya with an estimated built-up area of about 7,000 sq ft, expand its digital marketing team, pursue strategic investments in established digital marketing firms, repay bank borrowings and fund its working capital.

For the financial year ended Dec 31, 2025 (FY2025), Colony's profit after tax (PAT) jumped 89.4% to RM10.68 million from RM5.64 million a year earlier, while revenue rose 5.6% to RM118.12 million from RM111.83 million.

Overseas operations contributed 57.5% of FY2025 revenue, led by Indonesia at 33.5%, followed by Hong Kong SAR at 23% and Cambodia at 1.2%. Malaysia accounted for the remaining 42.3%.

Colony Group intends to adopt a dividend policy of distributing up to 50% of its annual profit after tax. It paid total dividends of RM19.09 million in FY2025, compared with RM950,000 in FY2024.

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