KUALA LUMPUR: AMS Advanced Material Bhd, an aluminium specialist supplying and processing a variety of aluminium products, signed a retail underwriting agreement with M&A Securities Sdn Bhd for the initial public offering (IPO) of its upcoming listing on the ACE Market of Bursa Malaysia.

Managing director Keith Keh Teng Yang said the signing of the underwriting agreement represents an important milestone in the group’s corporate journey as it takes a step closer to listing on the ACE Market.

“Our group is strategically positioned at the heart of an industry on a clear structural growth path,“ he said.

According to the Independent Market Research report, the Malaysian aluminium industry is projected to grow at a CAGR of 6.39%, reaching RM10.74 billion by 2029.

“We are encouraged by growth prospects in high-value end-markets such as aerospace, semiconductor and engineering support industry (ESI), automotive and transportation, construction and building material, and consumer.

“The listing will enable us to further strengthen our operational capabilities, enhance efficiency across our processing segment and support our long-term growth plans,” Keh said.

AMS Advanced Material’s IPO consists of a public issue of 113 million shares and an offer for sale of 47 million shares.

The shares make up about 18.46% of AMS Advanced Material’s enlarged issued share capital upon listing.

A total of 30.6 million shares will be open to the Malaysian public through balloting. Another 2.15 million shares are reserved for eligible persons.

In addition, 76.5 million shares will be placed out privately to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti).

The remaining 3.74 million shares will be allocated via private placement to selected investors.

Separately, the offer for sale involves 47 million shares, representing about 7.68% of AMS Advanced Material’s enlarged issued share capital.

These shares will also be placed privately with selected investors.

Under the underwriting agreement, M&A Securities will underwrite 32.75 million shares. This covers the portion made available to the Malaysian public through balloting, as well as the shares reserved for eligible persons.

M&A Securities Sdn Bhd head of corporate finance Gary Ting said over the years, AMS Advanced Material has built extensive industry experience and plays an important role in supporting customers across various sectors.

“We are honoured to be part of AMS Advanced Material’s IPO journey and look forward to continuing our collaboration as the group embarks on its next phase of growth,” he said.

The proceeds from the IPO have been earmarked for setting up a new licensed manufacturing warehouse and office in Penang, expanding into the manufacturing of aluminium architectural products, setting up a new distribution point in Kuantan, and repayment of borrowings, amongst others.

M&A Securities is the principal adviser, sponsor, underwriter, and placement agent for this IPO exercise.

 The Sun Malaysia