ASM Automation aims to raise RM22mil from listing on ACE Market
From left: Kamalam Kurup Krishnan, executive director, ASM Automation Group; Tengku Faizwa Tengku Razif, independent non-executive chairperson; Leong Weng Khin executive director; Chan Kok Heng, managing director; Datuk Bill Tan, managing director, M&A Equity Holdings Bhd; Gary Ting, head of corporate finance, M&A Securities; Danny Wong, deputy head of corporate finance; and Kelvin Khoo, managing director, Eco Asia Capital Advisory Sdn Bhd
KUALA LUMPUR: Automation machinery solutions specialist ASM Automation Group Bhd aims to raise RM21.82 million through its initial public offering (IPO) en route to a listing on the ACE Market of Bursa Malaysia on July 2.
In a statement yesterday, ASM Automation said the IPO involves the public issue of 128.34 million new shares, representing 24% of its enlarged share capital of 534.77 million shares. It said there will be an offer for sale of 53.48 million existing shares, equivalent to 10% of the enlarged share capital. IPO shares will be issued at an IPO price of RM0.17 per share.
ASM Automation said RM11.40mil will be utilised for the construction of a new factory, RM2.30mil for the purchase of machinery, and the acquisition of equipment and components for demonstration machinery to support operational growth and customer engagement, RM2mil to enhance research and development capabilities, RM1.92mil for working capital to support day-to-day operations and RM4.2mil for listing expenses.
The company's managing director Chan Kok Heng said the IPO proceeds will fuel the company's next phase of expansion.
He said the IPO would not only provide the funding required for its expansion plans but also enhance its visibility and credibility as a publicly listed automation machinery solutions provider.
M&A Securities is the IPO's principal adviser, sponsor, underwriter and placement agent, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser. — Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
3 hours ago
- The Star
Amway on steady path
Amway (M) Holdings Bhd is in a 'normalisation' phase after a period of pandemic- driven hypergrowth. Amway Malaysia, Indonesia, Singapore and Brunei's managing director, Mike Duong, says 2024 has reinforced Amway's business model and ability to adapt to evolving market conditions. Billed as RM9.73 for the 1st month then RM13.90 thereafters. RM12.33/month RM8.63/month Billed as RM103.60 for the 1st year then RM148 thereafters. Free Trial For new subscribers only
The Star
3 days ago
- The Star
Signature Alliance's ACE Market debut nets RM161mil
From left: SAG group chief financial officer Saw Gee Kai, independent director Datuk Boey Chin Gan, independent director Tan Poh Cheok, independent director Lim Sook Yee, promoter and CEO for central region Melvin Ng, executive director and CEO of northern region Mario Foo, executive director and group CEO Darren Chang, promoter Chiau Haw Choon, chairman Datuk Wan Ahmad Satria Wan Hussein, M&A Equity Holdings Bhd Datuk Bill Tan, promoter Datuk Seri Chiau Beng Teik, Chin Hin Group chief financial officer Michael Lim, SAG director Lau Kock Sang and M&A Securities Sdn Bhd head of corporate finance Gary Ting. KUALA LUMPUR: Signature Alliance Group Bhd (SAG) expects to deliver double-digit growth in net profit for the financial year ending Dec 31, 2025 (FY25), underpinned by its robust unbilled order book and tender book. As at April 16, 2025, the interior fit-out solutions provider had a total unbilled order book of RM388.6mil, which will be realised progressively over the next one to two financial years. The group has 69 ongoing projects with a total contract value of RM902.4mil. SAG also has a tender book of RM1.1bil, comprising primarily commercial and industrial property projects. Its executive director and group CEO Darren Chang said the company is confident of securing between 15% and 20% of these tenders by end-2025. 'Based on our historical average tender success rate of around 15% to 20%, we are optimistic about meeting our target,' he told the media following the listing ceremony. For FY24, the group's net profit rose nearly four-fold year-on-year (y-o-y) to RM40.6mil, on the back of a higher gross profit and a net gain on the impairment of financial and contract assets. Revenue more than doubled y-o-y to RM386.02mil in FY24. SAG provides interior fit-out services for different types of premises in the commercial, industrial and residential sectors. In FY24, the commercial segment accounted for the bulk of the group's revenue at 75.2%, followed by the industrial segment at 18.4%, and residential at 6.4%. In terms of pursuing new customers, Chang noted that the group will focus more on the commercial and industrial segments. The company has many repeat customers in the residential segment and will continue to support them when they return with other projects. 'However, residential projects are not our main focus. Our focus remains on commercial projects such as hotels, corporate offices, shopping malls and retail brand spaces,' he said. SAG made its debut on the ACE Market of Bursa Malaysia yesterday, opening at 68 sen per share – six sen higher than its initial public offering (IPO) price of 62 sen. The opening volume was 8.9 million shares. The stock closed its maiden trading day at 70 sen. It hit a high of 72 sen and a low of 67 sen during intraday trade. SAG raised RM161.2mil from the public issue of 260 million new shares. The bulk of the proceeds raised – RM88mil – is earmarked for setting up a new corporate office and a 50,000 sq ft production facility in Selangor. Another RM4mil will be used to purchase machinery and equipment, while RM12mil will go towards expanding its existing Penang office and establishing a new branch office in Johor. Meanwhile, RM30.1mil is allocated for working capital. A further RM20mil is set aside for the repayment of bank borrowings, and the remaining RM7.1mil will be used to defray estimated listing expenses. According to Chang, there is a lot of ongoing development in Penang, where the company already has an office and plans to expand it to serve more customers. Previously, the company was not fully equipped financially to pursue new clients, but with the proceeds from its listing, it is now well-positioned to seek new customers in Penang. 'There is also a lot of ongoing development in Johor as well. For instance, the Johor Baru-Singapore Rapid Transit System Link project is nearing completion.' Chang explained that now is the right time for the company to return to Johor and expand its business there. Currently, the group operates two production facilities in Bandar Baru Bangi and Puchong, Selangor. SAG intends to centralise its production activities and improve overall efficiency by relocating both facilities to the new planned production facility in Klang.
New Straits Times
3 days ago
- New Straits Times
Econpile bags RM42.82mil piling contract for Penang LRT project
KUALA LUMPUR: Econpile Holdings Bhd's wholly-owned subsidiary, Econpile (M) Sdn Bhd has secured a RM42.82 million contract from Irama Duta Sdn Bhd to carry out bored piling and related construction works. In a filing with Bursa Malaysia, the company said the works are part of the Penang Light Rail Transit (LRT) Mutiara Line (MTL) – Package CMC1. "The project is expected to contribute positively to the company's revenue and earnings from the financial year ending June 30, 2026 onwards," it said, adding that the project is expected to commence on Aug 1, 2025, and the practical completion date is Oct 31, 2027. "There are no foreseeable significant risks other than operational risk associated with the project during the contract period. "The management would put in place control measures and operational procedures to reduce the impact or likelihood of such events," it added.
