KUALA LUMPUR: iCents Group Holdings Bhd, a provider of cleanroom services, will not be impacted by the US reciprocal tariffs as the company does not generate revenue from the United States.
However, some of its customers and end-users in Malaysia may be affected, since they manufacture products that are ultimately exported to the US market.
Managing director Vincent Ong Mum Fei noted that geopolitical events, financial crises, trade conflicts – including sanctions and tariffs – and technological shifts could effect the business.
He highlighted that, within Malaysia, changes in political, economic or regulatory conditions affecting the semiconductor and electrical and electronics sectors may also impact the company’s operations and financial performance.
“Our core focus is on design, functionality, and leadership within our industry. We handle everything from design and installation to production, collection and management.
“While there is no immediate impact from US developments or tariffs on our operations, we are mindful of potential indirect effects, especially as many companies adopt a ‘wait and see’ approach to ongoing global changes.
“However, we continue to see steady demand through our recurring projects and established central control systems,” Ong told reporters today after launching the prospectus in conjunction with the company’s initial public offering (IPO).
iCents provides services covering engineering, procurement, construction, and testing and commissioning (EPCC) of cleanrooms. The group also manufactures cleanroom fixtures and related products.
In addition to its cleanroom expertise, iCents provides a range of other facility services, including the hook-up of machinery and equipment, supply and installation of heavy-duty ceiling systems, construction services, and maintenance services for other facilities.
The group’s services cater to highly technical industries, semiconductor and electronics, data centres, life sciences and pharmaceutical product manufacturing.
As of June 5, the group reported an unbilled order book totalling RM93.21 million. This amount includes RM53.53 million from its cleanroom services segment and RM39.68 million from its other facility services segment.
iCents plans to set up a facility close to its Mantin factory to increase capacity to store materials and finished products. The new facility will be in rented premises with built-up area of about 20,000 sq ft that already has all required regulatory approvals.
Beyond Malaysia, iCents plans to set up a sales and technical support office in Jakarta, Indonesia, to provide an operational base to grow its business. It also intends to set up a sales and marketing office in Singapore, and a sales and technical support office in Kuching, Sarawak, to extend the group’s physical presence to East Malaysia.
iCents aims to raise RM27 million from its ACE Market listing. Out of that, RM4.68 million (17.31%) will allocated for the purchase of machinery and equipment, RM3.02 million (11.19%) for business expansion, RM1.72 million (6.35%) for product development, RM1.5 million (5.56%) for marketing activities, RM12.09 million (44.77%) for working capital and RM4 million (14.82%) to cover estimated listing expenses.
iCents’ IPO encompasses an issuance of 112.5 million shares, of which 25 million will be balloted to the Malaysian public, 10 million reserved for eligible directors, employees, and contributors, 15 million will be privately placed with selected investors, and 62.5 million will be privately placed with Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Additionally, 30 million shares will be privately placed with selected investors.
iCents will have a market capitalisation of RM120 million upon listing, which is scheduled for July 17, based on an enlarged issued share capital of 500.00 million shares and an IPO price of RM0.24 per share.
Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for iCents’ IPO.
In terms of financial performance, the group’s revenue increased from RM55.78 million in the financial year ended June 30, 2022 (FY22) to RM80.7 million in the financial year ended June 30, 2024 (FY24).
Over the same period, the group’s net profit rose from RM2.90 million to RM7.02 million, representing a compound annual growth rate of 55.57%.
For the six-month financial period ended Dec 31, 2024, the group recorded revenue of RM43.93 million and net profit of RM5.03 million.
Ong said the prospectus launch marks a significant milestone for iCents, underscoring commitment to growth and excellence.
With a decade of experience and a proven track record in delivering cleanroom projects for several multinational corporations, iCents is ready to embark into a new phase of growth journey and strengthen market presence, he added.
“The IPO proceeds will support key initiatives towards our business expansion plans including the purchase of machinery and equipment to enhance our in-house manufacturing capabilities, strengthening and expanding our presence across foreign geographical markets such as Indonesia, Singapore, and Sarawak, as well as the funding for working capital requirements,“ Ong said.
