KUALA LUMPUR: End-to-end piping solutions provider ISF Group Bhd made a strong debut on the ACE Market of Bursa Malaysia Securities Bhd yesterday, with its shares opening at 50 sen, a premium of about 52% over its initial public offering (IPO) price of 33 sen.
The counter saw an opening volume of 45.58 million shares, reflecting keen investor interest in the group’s growth prospects amid rising infrastructure spending and sustained demand from data centres and industrial projects.
ISF which is listed under the Industrial Products & Services sector is having Alliance Islamic Bank Bhd as its principal adviser, sponsor, sole underwriter and placement agent for the IPO.
Managing director Jeff Ai Boon Chen said the listing marks a key milestone for the group and positions ISF to scale up its operations and undertake projects with larger contract values.
“The listing of ISF on the ACE Market marks a significant milestone in our corporate journey. It reflects the sustained efforts of our team and the strong foundation built over the years,” he said during a press conference.
ISF specialises in the supply, installation, testing and commissioning of piping systems, covering water supply and sewer infrastructure, as well as maintenance and repair services. Its client base spans residential, industrial, commercial, institutional and healthcare developments, giving the group a diversified revenue stream.
Ai noted that while ISF has been capitalising on the rapid growth of data centres in Malaysia, the group is not a pure-play data centre contractor.
“Currently, about 20% of our order book relates to data centres, but we are a diversified end-to-end piping solutions provider,” he said.
“Our revenue comes from various segments including residential, industrial and commercial projects. If data centre projects slow down, we can pivot quickly to other segments, which have historically been our core strength.”
He added that data centre projects typically have shorter turnaround times of 12 to 18 months, resulting in a constantly replenished order book as ISF continues to tender for new jobs. The group expects new data centre projects to come on stream in 2026.
ISF currently has ongoing data centre-related projects in Klang Valley, Negeri Sembilan and Johor, alongside infrastructure and industrial works.
Looking ahead, Ai said, the group expects positive momentum from the upcoming 13th Malaysia Plan (13MP), which is anticipated to prioritise affordable housing and upgrades to infrastructure and public facilities.
“These initiatives are expected to support residential construction activity and, in turn, drive demand for potable water and sewer piping systems,” he said.
The group also sees opportunities arising from the establishment of the National AI Office, which is expected to accelerate the growth of Malaysia’s data centre industry.
The domestic data centre market is projected to grow at a compound annual growth rate of 22.4% to reach RM59.6 billion by 2030.
On expansion plans, ISF intends to strengthen its operational footprint, particularly in Johor and Peninsular Malaysia. This includes establishing a new head office and storage facility, expanding its existing operations in Johor, and setting up regional offices in the northern and central regions.
“We are also investing in new machinery and equipment, as well as expanding our workforce, which remains a key driver of our growth,” Ai said.
Addressing margin performance, Ai said, ISF’s net margin improvement was driven by its involvement in higher-specification projects such as data centres and industrial developments, as well as effective cost control and greater use of in-house manpower and equipment.
“We are positive about maintaining margins above the 20% level in 2026, supported by our project pipeline and strong execution capabilities,” he said.
From the RM61.15 million raised through the IPO, ISF has earmarked RM39.9 million for working capital, RM11.35 million for the establishment and expansion of operational facilities, RM2.05 million for developing existing business activities, RM1.85 million for workforce expansion, RM1.2 million for loan repayments and RM4.8 million for listing expenses.
