Latest news with #ASMAutomationGroupBhd
New Straits Times
04-07-2025
- Business
- New Straits Times
Rising automation in F&B sector boosts ASM's outlook
KUALA LUMPUR: ASM Automation Group Bhd is poised to capitalise on growing demand in the automation machinery solutions industry, driven by rising adoption in the food and beverage (F&B) sector and broader industrial needs. Managing director Chan Kok Heng said this presents significant growth opportunities for solution providers like ASM Automation. "The company is able to offer customised, end-to-end automation systems designed to enhance productivity, quality control, and operational agility amid changing consumer preferences and rising cost pressures," he told Business Times. ASM is principally involved in the provision of automation machinery solutions and complementary solutions, primarily for the F&B manufacturing industry. Chan said what sets ASM apart is its ability to deliver comprehensive and customised automation solutions. Its core expertise covers design and development, fabrication, installation, testing and commissioning of both front-of-line processing and end-of-line packaging systems. He added that the company has design and development (D&D) capabilities that enable it to expand its range of automation machinery solutions. ASM Automation also meets the standards required by multinational clients and provides dependable and timely technical support. Chan said one of the company's major clients is Liwayway Group, which has consistently contributed a significant portion to its revenue over the years. He added that ASM Automation has secured 29 new customers comprising local and multinational companies based in Malaysia, Singapore, Indonesia and the Philippines. "As such, in the event that we are unable to secure sales from any of our major customers, we believe that we will be able to secure additional sales from other customers to compensate from the loss of sales," he said. ASM Automation made a steady debut on the ACE Market of Bursa Malaysia yesterday, having opened at its initial public offering (IPO) price of 17 sen. At the opening bell, it was the most actively traded counter, with more than 10 million shares changing hands. The IPO raised RM21.82 million through a public issue of 128.34 million new shares, which made up 24 per cent of ASM Automation's enlarged issued share capital of 534.77 million shares. The listing also involved an offer for sale of 53.48 million existing shares, representing 10 per cent of the enlarged issued share capital. ASM Automation has allocated RM11.4 million, more than half of the IPO proceeds, for the acquisition of a 70,000-square-foot plot of land and the construction of a new factory to boost its production and assembly capacity.
The Sun
02-07-2025
- Business
- The Sun
ASM Automation makes ACE Market debut, shares open unchanged from IPO price
KUALA LUMPUR: ASM Automation Group Bhd, a home-grown automation machinery solutions provider, marked a key milestone today with its listing on the ACE Market of Bursa Malaysia. The company's shares opened at 17 sen each, matching the initial public offering (IPO) price. The counter closed at 16.5 sen, 0.5 sen or 2.9% below the offer price, with 51.425 million shares traded. Founded in 1994, ASM has evolved from a small-scale custom automation provider into a regional player in industrial automation, specialising in front-of-line processing and end-of-line packaging solutions for the food and beverage (F&B) manufacturing sector. Its services are supported by equipment upgrades, after-sales service, and a strong focus on design and development (D&D), enabling clients to automate and optimise their production lines for improved efficiency and reduced labour dependency. ASM raised RM21.82 million through the issuance of 128.34 million new shares. Of the IPO proceeds, RM11.4 million will be used for land acquisition and construction of a new factory to expand production and assembly capabilities; RM2.3 million for the purchase of machines and equipment to support operational growth and customer engagement; RM2 million to enhance D&D activities; RM1.92 million for working capital; and RM4.2 million to cover listing expenses. 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. Commenting on the company's debut, ASM managing director Chan Kok Heng said, 'Today marks a defining chapter in ASM's 30-year journey. Our successful listing is a testament to our team's dedication, the trust of our customers, and the confidence of our investors. With the capital raised, we're poised to scale up our operations, strengthen innovation and reinforce our leadership in automation.' M&A Equity Holdings managing director Datuk Bill Tan said, 'ASM's strong foundation, export footprint, and D&D capabilities make it well-positioned for regional growth. The market's response underscores investor confidence in its strategic direction and long-term prospects.' Echoing the sentiment, Eco Asia Capital Advisory managing director Kelvin Khoo, who is also the company's financial adviser, noted, 'ASM's listing reflects its strong fundamentals, operational maturity, and visionary leadership. With growing demand for intelligent automation, the group is well-positioned to deliver sustained value to shareholders.' The listing is set to catalyse ASM's next growth phase, including the development of its new factory, expanded R&D efforts, and penetration into new markets. As manufacturers increasingly turn to automation to optimise efficiency and reduce labour reliance, ASM aims to play a pivotal role in enabling digital transformation across industries.
New Straits Times
02-07-2025
- Business
- New Straits Times
ASM Automation debuts on ACE Market at IPO price
KUALA LUMPUR: ASM Automation Group Bhd made a steady debut on the ACE Market of Bursa Malaysia, opening at its initial public offering (IPO) price of 17 sen. The automation solutions provider was the most actively traded counter at the opening bell, with over 10 million shares changing hands. The IPO raised RM21.82 million from a public issue of 128.34 million new shares. ASM Automation is the 33rd company to be listed on Bursa Malaysia this year and the 24th on the ACE Market.
New Straits Times
10-06-2025
- Business
- New Straits Times
ASM Automation valued at 21 sen, 24pct above IPO ahead of July 2 debut
KUALA LUMPUR: ACE Market-bound ASM Automation Group Bhd (ASM) boasts a fair value estimate of 21 sen, representing a 23.5 per cent upside from its initial public offering (IPO) price of 17 sen, according to Malacca Securities Sdn Bhd. The firm said the valuation is based on a forward price-to-earnings ratio of 15 times, applied to the automation machinery solutions provider's projected mid-point earnings per share of 1.38 sen for the financial year 2026. "We believe the discount is justified given ASM's smaller market capitalisation, coupled with its single-digit top line growth," the brokerage said in a research report released Tuesday. ASM is scheduled to debut on Bursa Malaysia's ACE Market on July 2. The IPO, which opened for application on May 29 until June 19, is expected to raise RM21.8 million. The bulk of the proceeds will fund business expansion, with 52.2 per cent earmarked for land and factory construction, 10.5 per cent for demonstration machinery and 9.2 per cent for design and development. The remainder will be used for working capital and listing expenses. According to Malacca Securities, ASM holds just a one per cent share of the automation machinery solutions market, but its ability to offer end-to-end automation for food and beverage (F&B) manufacturers is seen as a key strength. "This is reflected in its notable average customer base of 220 as per Financial Years Under Review, including prominent clients like Adabi Consumer Industries Sdn Bhd and Malayan Flour Mills. "ASM's D&D capabilities have also long been hidden gems that F&B manufacturers have yet to recognise," the firm said. Unlike many of ASM's competitors that only supply machinery, the firm said ASM is able to customise its solutions to meet a wide range of manufacturing needs and industry applications. ASM's market versatility is also evident in its involvement beyond F&B, including sectors such as poultry and currency note sorting, which enhances its growth potential. "Given this flexibility, clients are able to utilise more of their manufacturing space, leading to better factory space utilisation and enabling better economies of scale — a win-win situation. "Aligned with government initiatives to shift Malaysia towards a digital economy, ASM intends to enhance its internet of things solutions and robotics technology through its in-house engineering and development with approximately RM2.0 million," the firm added. For the financial year 2024, ASM posted a net profit of RM7.1 million and revenue of RM39.13 million, with a healthy balance sheet. Despite a modest 1.5 per cent earnings compound annual growth rate over three years, ASM is viewed as having stable prospects, underpinned by customised solutions, a stronger capital base and alignment with Malaysia's automation agenda. However, key risks include project delays, supply chain disruptions, talent retention issues, and geopolitical or regulatory uncertainties.
New Straits Times
29-05-2025
- Business
- New Straits Times
ASM Automation targets RM21.82 million proceed from Bursa listing
KUALA LUMPUR: Automation machinery solutions specialist ASM Automation Group Bhd aims to raise gross proceeds of RM21.82 million from its initial public offering (IPO), en route to a listing on the ACE Market of Bursa Malaysia. Priced at 17 sen per share, the IPO will offer up to 34 per cent stake in the company. The IPO involves a public issue of 128.34 million new shares, representing 24 per cent of ASM Automation's enlarged issued share capital of 534.77 million shares. It also includes an offer for sale of 53.48 million existing shares, equivalent to 10 per cent of the enlarged issued share capital. Application will close on June 19, and the company is scheduled for listing on July 2. ASM Automation plans to allocate RM11.40 million or over half of the IPO proceeds for the acquisition of 70,000-square-feet land and construction of a new factory to increase production and assembly capacity. A total of RM2.3 million or 10.5 per cent is earmarked for purchase of machinery, equipment and components used in assembling demonstration machineries to support operational growth and customer engagement. The company also will use RM2 million or 9.2 per cent of the proceeds for design and development activities to enhance research and development capabilities, while RM1.92 million or 8.8 per cent is for working capital to support day-to-day operations. The remaining RM4.2 million or 19.3 per cent of the proceeds will be used to pay the listing expenses. ASM Automation managing director Chan Kok Heng said it is now well-positioned to deepen its technical capabilities and expand its market reach, having evolved from a local custom automation provider into a trusted name in the automation machinery solutions industry. "The IPO will not only provide the funding required for our expansion plans but also enhance our visibility and credibility as a public-listed automation machinery solutions provider. "With these resources, we aim to scale our innovation, manufacturing capacity and export footprint to deliver even greater value to our customers," he said in a statement.
