i-Stone Group Berhad (“i-Stone” or the “Company”) today 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 Berhad (“Bursa Securities”). Representing i-Stone is its Managing Director, Ms. Tee Sook Sing (“Rebecca Tee”) and Executive Director, Mr. Chin Chung Lek while M&A Securities is represented by its Managing Director of Corporate Finance, Datuk Bill Tan and Executive Director, Mr. Goh Hock Jin.
Managing Director of I-Stone, Rebecca Tee expressed, “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. We are also delighted to have M&A Securities as our Adviser, Sponsor, Underwriter and Placement Agent to come on board with us for the Company’s listing exercise and we thank them for their confidence in us.”
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 Berhad.
In explaining the operations of the group, Rebecca 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,” Rebecca Tee added.
Commenting on the IPO exercise, Datuk Bill 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 Group has a reputable name in the industry and has a wide portfolio of customers that come from a varied mix of industries. These include manufacturers of home appliances, industrial products, automotive parts and components and automotive vehicles. We are currently servicing notable names in the Electrical & Electronics industry. Additionally, in line with the group’s growth strategy, we have recently centralised all operations at our manufacturing facility in Taman Teknologi, Johor to improve overall efficiency and productivity,” Rebecca Tee said.
“We believe that the successful listing would enhance i-Stone’s profile in no small way and propel it towards increasing our reputation and capabilities even further in the future,” Rebecca Tee added.
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 20.0% of the enlarged issued and paid-up share capital. Of the 244,296,000 new ordinary shares, 61,074,000 new shares will be made available to the Malaysian public via public balloting, of which 12,215,000 new shares will be allocated for its eligible Directors and employees; 122,148,000 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 48,859,000 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 122,148,000 existing shares to selected investors by way of private placement.
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.