Colform debuts on ACE Market of Bursa Malaysia with Premium of 11.11%

Colform Group Berhad (Colform) has officially made its debut on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Securities). The Company opened at RM0.40 per share, recording a 11.11% premium over its initial public offering (IPO) price of RM0.360 per share.

Colform is listed under the stock name “COLFORM” and stock code “0341”.

With over 20 years of experience, Colform has become a trusted partner in delivering complete steel solutions for Malaysia’s construction projects from start to finish. Based in Kota Kinabalu, Sabah, Colform offers a variety of steel products like roofing sheets, wall claddings, and IBS steel framing systems. These products are designed to be cost-effective and save on labor while meeting industry standards. Colform works with many clients, including government, commercial, and private sectors, ensuring reliability and innovation in every project.

For the nine months ending on 30 September 2024 (9MFY24), Colform reported a gross profit of RM23.47 million, exceeding the full-year gross profit of RM21.02 million from FYE2023, even though revenue fell to RM76.97 million from RM92.53 million in FYE2023. This increase in gross profit shows the Group’s ability to manage costs better, improve efficiency, and focus on higher-profit products like IBS steel framing systems.

Through disciplined cost management and production optimisation, Colform has successfully improved its profitability, demonstrating resilience in a dynamic market environment. The Group’s emphasis on value-added steel solutions and strategic cost-saving measures has strengthened its position in the industry, ensuring sustainable growth moving forward.

Through its IPO, Colform successfully raised RM41.19 million. The proceeds are allocated to:

• RM9.00 million for setting up a new colour coil coating production line in Kota Kinabalu;
• RM4.50 million for constructing a new storage facility in Kota Kinabalu to enhance operational efficiency;
• RM5.10 million for expanding its market presence by establishing a branch and factory in Klang, Peninsular Malaysia;
• RM18.09 million for working capital purposes; and
• RM4.50 million for listing expenses.

Mr. Kang Ket Hung, Managing Director of Colform Group Berhad, commented, “Today’s listing on the ACE Market is a monumental achievement for Colform Group Berhad. This milestone represents our dedication to delivering quality steel solutions and expanding our footprint across Malaysia. The funds raised from this IPO will enable us to strengthen our operations, enhance our product offerings, and explore new market opportunities. We are excited about the road ahead and remain committed to creating lasting value for our clients, stakeholders, and the construction industry.”

He also added, “We would also like to express our sincere appreciation to Mercury Securities Sdn. Bhd. for their unwavering support as our Principal Adviser, Sponsor, Sole Underwriter, and Sole Placement Agent. The overwhelming response from investors is a reflection of the confidence placed in Colform’s vision and potential. This trust inspires us to continue striving for excellence as we move forward under the leadership of our management team and the guidance of our Board of Directors.”

The listing provides Colform with a robust platform to execute its growth strategy and capitalise on the rising demand for innovative and reliable steel solutions in the construction sector.

Mercury Securities Sdn Bhd is the Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent for Colform Group Berhad.