KUALA LUMPUR: ISF Group Bhd, an end-to-end piping solutions provider, expects data centres to be a major contributor to revenue growth in the coming years, supported by the continued expansion of investments into the sector in Malaysia.
Managing director Jeff Ai Boon Chen said the market continues to show strong momentum in data centres, with sustained growth anticipated over the next two to three years.
“While data centres remain a significant focus, we are not reliant on this segment alone. We are deliberately maintaining a balanced growth strategy across all segments, including industrial and commercial ones, while strategically capitalising on the expected expansion of data centres in the near term,” he told reporters after the company’s initial pubic offering (IPO) prospectus launch today.
He said Malaysia’s data centre industry is projected to rise at a compound annual growth rate of 22.4% between 2025 and 2030, reaching RM59.6 billion by 2030.
Since the commencement of business operations in 2001, the group began as a trader of plumbing materials. With a proven track record in this business, the group has undertaken numerous projects, including large-scale ones across a diversified range of end-user premises. These projects span across industries, data centres, residential, commercial, institutional, healthcare, and infrastructure, such as power plants and mass transit facilities.
As of Dec 9, 2025, the group’s unbilled order book stood at RM120.68 million, mainly comprising RM117.47 million from end-user premises piping projects, with the remaining RM3.21 million from infrastructure piping projects.
This is expected to provide earnings visibility to the group up to the financial year ending Dec 31, 2028.
“We plan to expand our technical and professional workforce by approximately 20%. From a current headcount of about 285 employees, we intend to increase our workforce to approximately 302, with the additions primarily comprising professional and technical personnel,” Ai said.
Moving on, the group plans to construct a new head office and storage facility in Johor, while establishing additional offices to expand its geographical presence in the northern and central regions.
In parallel, the existing Selangor office will be expanded to support increased manpower and operational capacity.
“We plan to establish offices in the central and northern regions to support our growth strategy. The central region, including Kuala Lumpur, Malacca and Negeri Sembilan, currently contributes approximately 20% of our revenue, and having a local presence will allow us to better support and scale this segment.
“We are also seeing increasing project opportunities in the northern region, where a single office can effectively serve multiple surrounding states. Rather than expanding excessively, we are taking a targeted approach, with plans to establish these offices by the second quarter of 2026,” Ai said.
To strengthen its core business activities, the group intends to invest in new plants and machinery, including vibro machines, bulk packers, and lorry cranes.
ISF Group aims to raise RM61.15 million from its IPO at a price of 33 sen per share.
The proceeds will be utilised for establishing and expanding operational facilities (RM11.35 million or 18.56%), developing existing business activities (RM2.05 million or 3.35%), expanding the workforce (RM1.85 million or 3.03%), loan repayments (RM1.2 million or 1.96%), working capital requirements (RM39.9 million or 65.25%), and estimated listing expenses (RM4.8 million or 7.85%).
ISF Group’s IPO entails a public issue of 185.3 million shares, representing 18.53% of its enlarged issued share capital, as well as an offer for sale of 90 million shares, representing 9% of its enlarged issued share capital.
Of the 185.3 million shares, 50 million will be allocated to the Malaysian public via balloting, 15 million to eligible directors, employees and contributors under the Pink Form Allocation, 35 million through private placement to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), and the remaining 85.3 million through private placement to selected investors.
In addition, all 90 million shares will be placed privately with selected Bumiputera investors approved by Miti.
Upon listing, the group will have a market capitalisation of RM330 million, based on its enlarged issued share capital of 1 billion shares and IPO price of 33 sen per share.
ISF Group is scheduled to be listed on the ACE Market of Bursa Securities on Jan 28.
Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for ISF Group’s IPO.
