PETALING JAYA: Colform Group Bhd will utilise the RM41.19 million raised from its initial public offering (IPO) to strengthen operations, enhance product offerings and explore new market opportunities.
Managing director Kang Ket Hung said the company’s ACE Market listing today is a monumental achievement that represents its dedication to delivering quality steel solutions and expanding its footprint across Malaysia.
“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,“ he said at the listing ceremony in Kuala Lumpur today.
Colform shares opened at 40 sen compared to the IPO price of 36 sen apiece.
From the proceeds, Colform is allocating RM9 million to establish a new colour coil coating production line in Kota Kinabalu, Sabah, and RM4.5 million to construct a storage facility to enhance operational efficiency.
Further, RM5.1 million will be used for market expansion through the establishment of a branch and factory in Klang, Selangor, RM18.09 million for working capital and RM4.5 million for listing expenses.
With more than 20 years of experience, Colform has solidified its presence, delivering end-to-end steel solutions to support Malaysia’s construction development from concept to completion. Its offerings span various types of downstream steel products, such as roofing sheets, wall claddings and Industrialised Building System (IBS) steel framing systems.
The company provides cost-efficient, labour-saving solutions tailored to meet industry standards. It serves a diverse clientele, including government, commercial, and private sectors, and embodies reliability and innovation in every project.
Rakuten Trade Sdn Bhd said Colform is well-equipped to sustain its financial strength and drive long-term growth post-listing.
Rriding on East Malaysia’s growth, Colform has a strong balance sheet of net cash and is poised to provide a competitive edge within the steel and construction materials market segment, Rakuten Trade said.
Colform is expanding to Peninsular Malaysia with a 50,000 sq ft factory in Klang that is set to begin operations by the fourth quarter of this year. The new facility will serve as a hub for production, storage, and sales, targeting the larger downstream steel and colour-coated coil markets.
With Public Works Department’s certification, Colform is able to secure large-scale public projects for prefabricated steel roof trusses, Rakuten Trade said in a note. “This accreditation further strengthens its foothold in Sabah’s IBS segment while unlocking new opportunities in Peninsular Malaysia.”
The securities firm said Colform has a strong presence in Kota Kinabalu and Sandakan, differentiating itself between integrated steel production and its ability to handle project-specific needs efficiently.
Colform’s focus on IBS aligns with the government’s push for efficient, high-quality, and safer construction practices, thus providing a competitive edge within the steel and construction materials market segment.
The company will also implement an enterprise resource planning system to centralise data, streamline processes, and enhance operational efficiency.
“We project Colform to achieve core net earnings of RM18.4 million-RM22.4 million for FY24-FY26. We recommend a ‘buy’ call with a fair value of RM0.52 based on a 15x price-to-earnings ratio over FY25 earnings-per-share,“ Rakuten Trade said.
