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PETALING JAYA: Sabah-based steel product maker Colform Group Bhd is seeking a listing on the ACE Market, with plans to use the proceeds raised to install a colour coil coating production line, build a new storage facility in Kota Kinabalu and to venture into Peninsular Malaysia by setting up a factory in Klang.
Post-initial public offering (IPO), the Kang family will continue to control Colform with over a 70% stake.
In a draft prospectus filed yesterday, Colform said its IPO will entail the public issue of 114.42 million new ordinary shares and an offer for sale of 54 million existing shares.
Of the 114.42 million new ordinary shares, a total of 30 million will be allocated to the Malaysian public and six million to eligible persons.
About 75 million will be allocated to selected bumiputra investors approved by the Investment, Trade and Industry Ministry, while the remaining 3.42 million new shares will be privately placed to selected investors.
The promoters of Colform are managing director Kang Ket Hung and executive directors Kang Phui Yie and Kang Phui Ting.
Their private vehicle, Kang Ming Trading, will control 70.86% in Colform post-IPO.
With the money raised from the listing, Colform intends to produce colour coated coils in-house by installing a colour coil coating production line.
It also looks to build a storage facility with a total built-up area of 40,000 sq ft, adjacent to its Kota Kinabalu factory
In addition, it intends to expand its business to Peninsular Malaysia by setting up a factory in Klang, Selangor.
Colform offers a wide range of steel products including roofing sheets, roofing accessories, wall claddings, decorative steel products, roller shutters, purlins and battens, door and window frames and floor decks.
It also manufactures steel framing systems for industrialised building systems.
Mercury Securities Sdn Bhd is the sponsor for the IPO.
Save for construction projects, Colform said it is responsible for the provision of supply and installation services and/or project management services for construction projects.
“We do not enter into any long-term contracts with our customers and all our sales are based on purchase orders placed by customers. The lack of long-term contracts is mainly due to the nature of our business and prevailing customer practices, whereby the sale of our products is subject to our customers’ specific needs based on the requirements of their projects,” it said.
