KUALA LUMPUR: AMS Advanced Material Bhd (AMSB), an aluminium specialist supplying and processing a wide range of aluminium products, aims to raise RM32.77 million from its ACE Market initial public offering (IPO) to fund expansion.
AMSB managing director Keh Teng Yang said a significant portion of the proceeds will be channelled into manufacturing and processing expansion.
“We are already running at full capacity. The expansion is to complement and increase our capacities, and within 12 months, we should be able to ramp up revenue from this initiative,“ he said at a press conference after the prospectus launch yesterday.
Keh said the initiative is expected to deliver additional revenue growth of about 10% to 20%, driven by increased capacity and stronger demand from semiconductor and engineering customers.
Of the total IPO proceeds, 24.73% will be allocated to the setup of a new licensed manufacturing warehouse plant in Penang to support its export-oriented semiconductor and engineering customers.
In addition, 21.05% will be utilised to expand into the manufacture of aluminium architectural products, broadening its product offerings.
Another 7.63% will be allocated to establish a new distribution point in Kuantan, Pahang, to enhance delivery efficiency and market reach across the East Coast region.
A further 24.92% will be allocated to the repayment of borrowings, and 8.15% will be set aside for working capital to support day-to-day operations. The remaining proceeds will be used to cover IPO and listing-related expenses.
“With the new manufacturing warehouse, the plans are in place, and we can import materials from the US and other countries to service our existing clients,“ Keh said.
On the new manufacturing warehouse timeline, he said the group has up to about 24 months from listing in April, with approximately 6 months required to obtain the manufacturing warehouse licence.
The IPO aims to raise RM32.77 million through a public issue of 113 million new ordinary shares, at 29 sen per share, representing 18.46% of its enlarged issued share capital of 612 million shares.
The IPO comprises an offer for sale of 47.00 million existing ordinary shares, representing 7.68% of the company’s enlarged issued share capital. These shares will be allocated through private placement to selected investors.
Based on the IPO price of 29 sen, AMSB is expected to have a market capitalisation of about RM177.5 million upon listing.
Applications will close on April 10, and AMSB is scheduled to be listed on April 23.
M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.
M&A Securities managing director (corporate finance) and executive director Datuk Bill Tan said ÁMSB’s strong market presence, established brands and forward-looking strategies mean the group is well-positioned to seize growth opportunities in the aluminium and copper industry.
“This IPO marks a strategic milestone that will further enhance AMSB’s operations and competitiveness.”
