Kota Kinabalu: Sabah-based steel product maker Colform Group Bhd aims to raise RM41.19 million through its initial public offering (IPO), en route to its listing on the ACE Market of Bursa Malaysia on February 10, 2025.
According to BERNAMA News Agency, the IPO, priced at 36 sen per share, involves the public issue of 114.42 million new shares and an offer for sale of 54 million existing shares, representing 28.07 percent of the company's enlarged issued shares. Colform Group's managing director, Kang Ket Hung, stated that the proceeds from the IPO will be used for the company's business expansion plan.
Kang Ket Hung outlined specific allocations for the IPO proceeds, stating that RM9 million will be used for setting up a colour coil coating product line, RM4.50 million for the construction of a storage facility, and RM5.10 million for business expansion in Klang, Selangor. Additionally, RM18.09 million is earmarked for working capital, with the remainder allocated for listing expenses. He shared these details during a virtual press conference.
The company is currently establishing a colour-coating production line at its factory in Kota Kinabalu, Sabah. Colform plans to expand its market reach by shipping products to Peninsular Malaysia, where it aims to tap into a broader customer base with its Industrial Building System (IBS) and steel solutions.
Kang Ket Hung emphasized that the launch of the IPO prospectus is a significant milestone in the company's history. Since its inception in 2003, Colform has evolved into a provider of comprehensive steel solutions, offering services from design to installation, including IBS framing systems. The company's adaptability and innovation in response to changing customer demands have been crucial to its success.
Mercury Securities Sdn Bhd is serving as the principal adviser, sponsor, sole underwriter, and sole placement agent for the IPO exercise. Following the prospectus launch, applications for the public issue are now open and will close on January 23, 2025, at 5 pm.