Kuala Lumpur: Automation machinery solutions specialist ASM Automation Group Bhd aims to raise RM21.82 million through its initial public offering (IPO) en route to a listing on the ACE Market of Bursa Malaysia Securities Bhd on July 2, 2025.

According to BERNAMA News Agency, ASM Automation stated that the IPO involves the public issue of 128.34 million new shares, representing 24 per cent of its enlarged share capital of 534.77 million shares. Additionally, there will be an offer for sale of 53.48 million existing shares, equivalent to 10 per cent of the enlarged share capital. The IPO shares will be issued at a price of RM0.17 per share.

ASM Automation outlined the allocation of the IPO proceeds, specifying that RM11.40 million will be directed towards constructing a new factory, RM2.30 million for purchasing machinery, and acquiring equipment and components for demonstration machinery to bolster operational growth and customer engagement. Furthermore, RM2 million will be allocated for design and development activities to enhance research and development capabilities, RM1.92 million for working capital to support day-to-day operations, and RM4.2 million for listing expenses.

The company’s managing director, Chan Kok Heng, emphasized that the IPO proceeds will support the company’s strategic expansion. He highlighted that the IPO would not only secure the necessary funding for expansion plans but also improve the company’s visibility and credibility as a publicly listed automation machinery solutions provider. Chan noted that this move would enable ASM Automation to significantly expand its assembly and production capacity, improve workflow integration, and cater to larger and more complex projects.

M and A Securities is serving as the IPO’s principal adviser, sponsor, underwriter, and placement agent, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.