Tee (fourth right) poses as i-Stone executive director Chin Chung Lek (fourth left) and independent non-executive chairman Datuk Azman Mahmood (fifth right) bang a gong to symbolise the listing of i-Stone on Bursa Malaysia. Also seen are Tan (third right) and other members of the senior management team at i-Stone and M&A Securities.
KUALA LUMPUR: i-Stone Group Bhd (i-Stone) aims to enhance its manufacturing capabilities and develop new products and features into its machines to meet the increasing demand for higher productivity and efficiency.
Celebrating its debut on the ACE market of Bursa Malaysia Securities Bhd yesterday, the company began trading under the stock name ISTONE.
The proceeds raised by i-Stone amounted to RM39.1 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.
Speaking at the listing ceremony, i-Stone managing director, Rebecca Tee Sook Sing expressed her excitement on the company’s corporate journey onwards.
She said, “Our well-crafted plan for business expansion through new products and processes as well as effort to enhance our financial capabilities and future funding are made possible via the success of this listing exercise. I want to take this opportunity to express my utmost appreciation to those who have played their role well in making this new corporate journey a reality.
“Also special thanks to M&A Securities Sdn Bhd (M&A Securities) as our adviser, sponsor, underwriter and placement agent.”
i-Stone provides design, manufacturing & modification, maintenance and technical support services for its specialised automation machines and provision of data management system (DMS) used for monitoring and controlling of manufacturing process. It also designs and fabricates metal frames, panels and precision machining parts, and also distributes manufacturing automation hardware and software.
“It is with great pleasure I share with you that the response to our Initial Public Offering (IPO) was extremely favourable with its retail tranche of 61.07 million new shares reserved for application by the Malaysian public registering an oversubscription rate of 11.56 times,” added Tee.
M&A Securities managing director of Corporate Finance, Datuk Bill Tan previously highlighted that i-Stone has a 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.
“i-Stone has been involved in the manufacturing automation business segment for more than 12 years and I am confident of their potential.”
Elaborating on i-Stone’s growth trajectory, Tee explained that in the process and product development, the company plans to design, develop and manufacture standard modules which can be used for its range of specialised automation machines to reduce manufacturing lead time.
“We also intend to develop new products and introduce new features into our machines to meet our customers’ increasing demands for higher productivity and efficiency of their manufacturing operations.
“We have earmarked the amount RM6.8 million for the construction of our new design and development centre. Our manufacturing capabilities would too be boosted by the acquisition of new machineries.”
She added: “The board is positive of our Group’s prospects, after taking into consideration our future plans as elaborated above, our key competitive strengths, as well as the positive outlook of the specialised machinery and equipment market in Malaysia in Malaysia from 2018 to 2020.”
According to the Industry Overview, the manufacturing sales value of specialised machinery and equipment market in Malaysia increased from RM1 billion in 2015 to RM1.97 billion in 2017 at a compound annual growth rate of 40.36 per cent, driven by growing demand for automation by Electrical and Electronics industry, continuous technological advancements and Government initiatives in support of automation.
“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 and brand owners of home appliances, consumer electronics devices, industrial product and automotive parts. 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,” Tee said.