PETALING JAYA: i-Stone Group Bhd inked an underwriting agreement with M&A Securities Sdn Bhd to pave the way for its listing on the ACE Market of Bursa Malaysia.
According to the underwriting agreement, M&A Securities will underwrite 73.29 million new shares comprising 61.07 million new shares made available for the public and 12.22 million new shares for eligible directors and employees of the group.
i-Stone is involved in the manufacturing automation business segment. It has received approval from Bursa Malaysia for its initial public offering (IPO) exercise, which will see the issuance of 244.3 million shares, representing 20% of its enlarged issued and paid-up share capital.
The IPO proceeds will be used for process and product development; payment 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; and working capital.
“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,” said managing director Rebecca Tee Sook Sing.