KUALA LUMPUR: ISF Group Bhd is set to ride Malaysia’s booming data centre sector following its initial public offering (IPO).
The piping solutions group said it aims to secure new projects and expand its operational footprint.
Managing director Jeff Ai Boon Chen noted several data centre projects were currently underway in the Klang Valley, Negri Sembilan and Johor.
“We are expecting new projects for data centres coming in this year,” he told a press conference after the company’s listing ceremony on the ACE Market of Bursa Malaysia yesterday.
Ai noted that data centre projects account for 47.5% of the group’s revenue, with the remainder comprising residential, industrial, commercial, institutional and healthcare projects.
“Basically, now we are capitalising on the rise of data centre projects to contribute to our revenues,” he said.
ISF Group is principally involved in the supply and installation of piping systems for end-user premises, and for water and sewer infrastructure.
The group’s shares opened at 50 sen yesterday, a premium of 17 sen over its IPO price of 33 sen.
Over the day, its shares surged 45.45%, or 15 sen, to close at 48 sen. It was the most active counter on Bursa Malaysia, with 264.5 million shares traded.
The IPO raised RM61mil, with the founding family selling almost 28% of the Pontian-based company for close to RM30mil.
Of the total raised, ISF Group has allocated RM11.35mil to establish and expand its operational facilities and RM2.05mil to develop existing businesses.
“The group aims to establish a new head office and a storage facility in Johor Baru, together with new regional offices in the northern and central region.
“Furthermore, we will also expand our current office in Johor Baru, which will cater to more incoming staff,” Ai said.
The group has also allocated RM1.85mil for the expansion of its workforce, while RM1.2mil is earmarked for loan repayments, and RM39.90mil will be allocated for its working capital.
Ai said the group’s two major cost components are labour and material purchases.
He added that, going forward, the group is maintaining a positive outlook for its growth and profit margins.
He said the group plans to expand its workforce by bringing in more professionals and technical staff such as beam modellers, engineers, project managers and quantity surveyors.
Ai said that for the time being, the company has 220 construction personnel, and most projects are being executed using in-house manpower.
“When there is a tight deadline, we will need to have a third party or a subcontractor to assist us, so it depends on the progress of the project,” he said.
