Sabah’s Colform eyes Peninsular Malaysia, Sarawak after ACE Market listing
KUCHING (Jan 15): East Malaysian steel and building material specialist, Colform Group Berhad (Colform), has its eyes set on Peninsular Malaysia and Sarawak for its products, especially colour-coated coils.
This was among the highlights of its prospectus launch on Wednesday in conjunction with its proposed Initial Public Offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad.
“We are setting up a colour-coated coil production line in Kota Kinabalu factory,” explained Kang Ket Hung, managing director of Colform, during a virtual press conference after its prospectus launch yesterday.
“We are planning to ship this over to Peninsular Malaysia to increase our production and also to increase our revenue to have better economies of scale.
“That’s why this is one of the main reasons we are in Peninsular Malaysia for the distribution and sales of our colour-coated coils.
“Secondly, Peninsular Malaysia has a wider customer base which we can tap into.”
Kang added that Colform currently has customers in Sarawak and is eyeing expansion into the state.
“Currently, we do have some customers in Sarawak. We are focusing on some other items such as steel processing products and more importantly, our colour-coated coiled products. We will definitely penetrate into the Sarawak market with this.
“Colour-coded coils is one of our major raw materials for our manufacturing products. So, with the in-house colour-coated coil production line, it will streamline our costs from purchasing from current local suppliers.
“This will give us big savings, and it will also increase our revenue as we can sell it to the same industry — not just in Sarawak, but the whole of Malaysia, I would say.
“Definitely, we can even export it overseas.”
Headquartered in Kota Kinabalu, Sabah, Colform’s offerings span across various types of downstream steel products such as roofing sheets, wall claddings and IBS steel framing systems—providing cost-efficient, labor-saving solutions tailored to meet industry standards.
Through this IPO, Colform aims to raise RM41.19 million via the issuance of 114.42 million new shares at an issue price of RM0.36 per share.
The group plans to allocate RM9 million for setting up a colour coil coating production line at the Kota Kinabalu factory as well as RM4.50 million for constructing a new storage facility in Kota Kinabalu.
It also plans to spend RM5.10 million for business expansion into Peninsular Malaysia, including establishing a branch office and leased factory in Klang.
The remaining RM18.09 million will be set aside for working capital purposes; and RM4.50 million for listing expenses.
Colform is expected to debut on the ACE Market on 10 February 2025. At an IPO price of RM0.36 per share, the company’s market capitalisation upon listing will stand at RM216 million.
-Agency
