ASM Automation Group Berhad Signs Underwriting Agreement with M & A Securities for IPO Exercise

KUALA LUMPUR, MALAYSIA / ACCESS Newswire / April 16, 2025 /ASM Automation Group Berhad ("ASM" or the "Group"), an established specialist of automation machinery solutions in Malaysia, is pleased to announce that the Group has formally signed an underwriting agreement with M & A Securities Sdn. Bhd. ("M & A Securities") in preparation for its Initial Public Offering ("IPO") on the ACE Market of Bursa Malaysia Securities Berhad ("Bursa Securities").

ASM, through its wholly-owned subsidiary, Arrow Systems Sdn Bhd, operates as a full-service automation machinery solutions provider, offering design, development, fabrication, installation, and commissioning of custom equipment. Its core offerings include Front-of-Line ("FOL") processing solutions, which automate the conversion of raw ingredients into finished food products, and End-of-Line ("EOL") packaging solutions, which streamline packaging from primary to tertiary stages. While the Group mainly serves the food and beverage ("F&B") manufacturing sector, it has also extended its capabilities to applications such as currency note sorting and packaging, as well as poultry inspection, sorting and packaging. Complementing its machinery solutions, ASM also provides equipment modification and upgrading services, maintenance services, as well as components and spare parts supply, enabling long-term partnerships with brand owners and contract manufacturers seeking to enhance productivity and reduce manual labour.

According to the exposed prospectus available on Bursa Securities ' website, ASM 's IPO comprises a public issue of 128.34 million new shares, representing 24.0% of the Group 's enlarged issued share capital of 534.77 million shares, as well as an offer for sale of 53.48 million existing shares, equivalent to 10.0% of the enlarged issued share capital.

The structure of the IPO is as follows:

Public Issue

• Malaysian Public:

  • 26.74 million shares or 5.0% of the Group 's enlarged issued share capital, with 2.5% made available to public investors and the remaining 2.5% made available to Bumiputera public investors.

• Pink Form Allocations:

  • 10.70 million shares or 2.0% of the enlarged issued share capital will be allocated to eligible directors, key senior management, employees and persons who have contributed to the success of the Group (collectively known as "Eligible Persons") through Pink Form Allocations.

• Private Placement to Bumiputera Investors Approved by MITI:

  • 66.85 million shares or 12.5% of the enlarged issued share capital are reserved for private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry Malaysia ("MITI").

• Private Placement to Selected Investors:

  • 24.06 million shares or 4.5% of the enlarged issued share capital are reserved for private placement to selected investors.

Offer for sale

• Offer for sale of 53.48 million shares or 10.0% of the enlarged issued share capital by way of private placement to selected investors.

Under the underwriting agreement, M & A Securities will underwrite 37.44 million shares, comprising shares allocated to the Malaysian public and Eligible Persons under the Pink Form Allocations. The remaining 144.39 million shares will be placed out to selected and Bumiputera investors by M & A Securities.

A report prepared by the independent market research firm Providence Strategic Partners Sdn Bhd forecasts the F&B automation machinery solutions industry in Malaysia will increase from RM1.7 billion in 2023 to RM3.7 billion in 2027 at a compound annual growth rate ("CAGR") of 21.5%. The forecasted growth of the F&B automation machinery solutions industry in Malaysia is supported by growth drivers such as increasing demand for processed F&B products, increasing demand for automation machinery, potential demand for automation machinery from other end user industries, and the government 's initiatives to promote the adoption of automation among micro, small and medium enterprises ("MSMEs").

Mr. Chan Kok Heng, Managing Director of ASM Automation Group Berhad, commented, "The signing of the underwriting agreement with M & A Securities marks another pivotal milestone in our IPO journey. The capital raised will enable us to further strengthen our operational footprint, particularly through the expansion of our manufacturing facility, purchase of new machines, assembly of demonstration machineries, and enhancement of our design and development capabilities. This listing not only validates our growth journey thus far but also sets the stage for ASM to scale up its impact across Malaysia and our overseas markets."

With a customer base spanning across Southeast Asia, India, China, and parts of Africa, and a portfolio of customised FOL and EOL automation machinery solutions, ASM is well-positioned to capitalise on growing industrial automation demand in the region. The IPO proceeds will be channelled into expanding its production capacity, acquiring advanced machinery, and intensifying Design and Development ("D&D") efforts to support next-generation automation technologies.

ASM obtained Bursa Securities ' approval for the listing on ACE Market of Bursa Malaysia on 20 February 2025. M & A Securities Sdn Bhd is the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the IPO while Eco Asia Capital Advisory Sdn. Bhd. is the Financial Adviser.

ABOUT ASM AUTOMATION GROUP BERHAD
ASM Automation Group Berhad ("ASM" or the "Group"), through its wholly owned subsidiary Arrow Systems Sdn Bhd, has been in the automation machinery solutions industry since 1994. The Group specialises in designing, developing, fabricating, installing and commissioning Front-of-Line ("FOL") processing and End-of-Line ("EOL") packaging solutions, primarily for the food and beverage ("F&B") manufacturing sector. ASM also provides complementary services such as equipment modification and upgrading services, maintenance services, and the supply of spare parts and components. With a strong track record serving both local and international clients, including the Liwayway Group, ASM is set to continue expanding its capabilities and market presence in line with growing demand for industrial automation across Asia and beyond.

For more information, visit https://arrowsystemsonline.com/

Issued By:Swan Consultancy Sdn. Bhd. on behalf of ASM Automation Group Berhad

For more information, please contact:
Jazmin Wan
Email:j.wan@swanconsultancy.biz

Xinyi Ching
Email:x.ching@swanconsultancy.biz

SOURCE:ASM Automation Group Berhad

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