I-Stone Group closer to listing on ACE Market
i-Stone Group Bhd (i-Stone) yesterday signed an underwriting agreement with M&A Securities Sdn Bhd ( M&A Securities) in conjunction with i-Stone’s Initial Public Offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd ( Bursa Securities).
Representing i-Stone is its managing director Tee Sook Sing and executive director, Chin Chung Lek while M&A Securities is represented by its managing director of corporate finance, Datuk Bill Tan and executive director, Goh Hock Jin.
Tee said, “We are excited to embark on this new phase in our corporate journey. This event marks a major milestone and brings us one step closer to the finishing line of the IPO process.”
Pursuant to the Underwriting Agreement, M&A Securities will underwrite a total of 73,289,000 new shares comprising 61,074,000 new shares made available for the Malaysian public and 12,215,000 new shares made available for eligible directors and employees who have contributed to the success of i-Stone Group.
In explaining the operations of the group, Tee added: “i-Stone Group has grown by leaps and bounds in the past 12 years since our inception.
“We have expanded our in-house capabilities for our manufacturing automation activities, which has led to the establishment of our business model that enables us to control the quality and production lead time as well as provides flexibility to design and manufacture our specialised automation machines.
“We operate a business model that integrates our in-house expertise and capabilities as our competitive advantage. This allows us to customise our specialised automation machines to suit the specifications and solutions required by our customers.
“In addition, we are also involved in the distribution of manufacturing automation hardware and software, namely Minitab Inc.’s statistical analysis software, Digi International’s wireless telecommunication devices and Universal Robots’ robotic arms,” Tee added.
The IPO proceeds will be utilised for the process and product development of the Company, repayment of bank borrowings, construction of a new design and development centre at its existing operations centre in Taman Teknologi, Johor, purchase of new machineries and software to enhance its manufacturing capabilities, purchase of new robotic arms, funding its working capital requirements as well as defraying listing expenses for the IPO.
Commenting on the IPO exercise, Tan said, “The Company’s proven track record, management experience, technical know-how and industry knowledge coupled with its long business relationship with customers and suppliers will contribute to its steady growth.
“The listing will undoubtedly put i-Stone in a favourable position to capture future growth opportunities in the specialised machinery and equipment industry. i-Stone has been involved in the manufacturing automation business segment for more than 12 years and I am confident of their potential.”
i-Stone had recently received the greenlight from Bursa Securities for its IPO, which will involve the issuance of 244,296,000 new ordinary shares in i-Stone, representing 20 per cent of the enlarged issued and paid-up share capital.
Of the 244.296 million new ordinary shares, 61.074 million new shares will be made available to the Malaysian public via public balloting, of which 12.215 million new shares will be allocated for its eligible directors and employees.
Meanwhile, 122.148 million new shares will be allocated for subscription by identified Bumiputera investors approved by the Ministry of International Trade and Industry of Malaysia, while the remaining 48.859 million new shares are earmarked for private placement to selected investors.
Additionally, as part of its listing exercise, the shareholders of the company will also make an offer for sale of 122.148 million existing shares to selected investors by way of private placement.