Company: ISF Group Berhad
Date of Prospectus: 10 December 2025

ISF Group Berhad IPO: In-Depth Analysis, Financials, Risks & Listing Outlook for Investors

ISF Group Berhad’s initial public offering (IPO) on the ACE Market of Bursa Malaysia represents a key opportunity in Malaysia’s infrastructure and construction sector. This report delivers an exhaustive, investor-grade analysis of ISF Group’s IPO offer, business fundamentals, financial health, risk profile, and potential market performance, designed for sophisticated investors and market watchers seeking actionable insights.

IPO Snapshot: Offer Structure, Price, and Key Details

ISF Group Berhad is offering its shares under the IPO symbol ISF. Below are the key offer highlights for investors:

• Offer Price: RM0.33 per share
• Total Offer Size: 275,299,000 shares (185,299,000 Public Issue + 90,000,000 Offer for Sale)
• Post-IPO Outstanding Shares: 1,000,000,000

Use of Proceeds:

• Capital expenditure (establish/expand facilities): RM11.35 million (within 36 months)
• Develop business activities: RM2.05 million (within 24 months)
• Expand workforce: RM1.85 million (within 24 months)
• Working capital: RM39.90 million (within 24 months)
• Loan repayments: RM1.20 million (within 6 months)
• Estimated listing expenses: RM4.80 million (within 3 months)

This allocation demonstrates a focus on growth, operational expansion, and balance sheet strengthening.

Dividend Policy:

• No fixed dividend policy
• Past dividends: FYE 2022 – RM2.0m, FYE 2024 – RM10.0m, FPE 2025 – RM12.0m
• Future dividends subject to profits, cash requirements, and board discretion

Application Window: 8 January 2026, 10:00 a.m. – 14 January 2026, 5:00 p.m.

Minimum public shareholding spread: 25% of issued share capital held by at least 200 public shareholders holding not less than 100 shares each upon listing.

Prospectus and Application Information: www.bursamalaysia.com

Placement and Issuance Breakdown

• Public tranche (Malaysian public): 50,000,000 shares (5.00%)
• Private placement (Bumiputera investors approved by MITI): 90,000,000 shares (9.00%)
• Other allocations (e.g., Pink Form, eligible persons): Not specifically quantified

No employee share scheme or ESOS in place as of the offer date.

Deal Parties and Underwriting Structure

• Principal Adviser, Sponsor, Sole Underwriter, Placement Agent: Alliance Investment Bank Berhad (AIS)
• Solicitors: David Lai & Tan
• Auditors/Reporting Accountants: Grant Thornton Malaysia PLT
• Independent Market Research: Vital Factor

All deal parties have confirmed no conflicts of interest in their professional roles.

Underwriting and Placement Agreements were executed on arm’s length, market terms.

Stabilization/Greenshoe: Not disclosed.

ISF Group Berhad: Business Model and Sector Positioning

ISF Group, through its subsidiary Yeo Plumber Sdn. Bhd. (YPSB), operates in the supply and installation of piping systems for end-user premises and water/sewer infrastructure. Revenue is derived from:

• Fixed lump-sum contracts
• Purchase and work orders (non-recurring)
• Maintenance and repair of piping systems

Key customer segments: Commercial and residential property developers, infrastructure contractors, public utilities.

Geography: Malaysia, with business concentrated in the southern region (Johor, Klang Valley focus inferred).

Brand and Market Position: Notable for strong growth in order book and revenue. As of latest date, unbilled order book stands at RM120.68 million, expected to be recognized from FYE 2025 to FYE 2028.

Financial Performance and Health

ISF Group has demonstrated substantial growth in revenues and profitability across the historical periods. Below is a snapshot of key financial results:

Cash and short-term deposits: RM35.09 million as at 31 July 2025

Working capital: RM24.83 million

Net cash from operating activities (FPE 2025): RM23.51 million

Debt (post-IPO, after loan repayment): RM5.32 million

Gearing falls from 0.22x to 0.07x after IPO, reflecting healthy deleveraging.

Management Team

Key management includes the Board of Directors and subsidiary leadership. Details on names and backgrounds are available in the company section. The team has delivered consistent growth and managed both expansion and profit margins effectively.

Trends, Timing, and Macro Environment

Industry Trends: ISF Group operates in the construction infrastructure sector, specifically water and wastewater piping. The company’s growth is linked to urbanization, infrastructure investments, and utility upgrades in Malaysia.
Order Book: RM120.68 million unbilled as at the latest practicable date, to be delivered over FYE 2025–2028.
Market Timing: Application period is 8–14 January 2026.
Sector Environment: The document describes a healthy pipeline and growing demand for piping services, with no noted adverse macroeconomic shocks affecting order flow or operations to date.

Recent Developments:

• Major divestment of non-core assets in FYE 2024 (RM8.94 million, mainly to related parties)
• YPSB acquisition completed for RM14.66 million via share issue

Risk Factors and Quantified Exposures

• Project-Driven Business: Revenue is non-recurring, dependent on continuous contract wins. Failure to secure new projects would impact performance.
• Share Price Volatility: No prior market for shares; price and liquidity may be volatile post-listing, impacted by market and company-specific events.
• Promoter Control: Promoters will own 72.47% post-IPO, retaining effective control over all major company decisions.
• Listing Risks: Listing may be delayed or cancelled under certain circumstances, including regulatory action or failure to meet public spread.
• Related-Party Transactions: Material transactions with directors/major shareholders, all at arm’s length, but may be subject to future shareholder approval if material/recurrent.
• General Business Risks: Macroeconomic shifts, political conditions, sector downturns, key personnel changes, legal disputes, regulatory changes, disasters, and health outbreaks.

Growth Strategy: Expansion and Capital Deployment

• Capital Expenditure: RM11.35 million to establish/expand operational facilities over 36 months
• Business Development: RM2.05 million for business activities within 24 months
• Workforce Expansion: RM1.85 million within 24 months
• Working Capital: RM39.90 million to support project delivery and future growth
• Debt Repayment: RM1.20 million to reduce gearing

Summary: ISF is positioning for continued organic growth, leveraging its increased capital base for order book execution and business scale-up.

Ownership, Lock-ups, and Post-IPO Shareholding Structure

Promoters/major shareholders: 72.47% post-IPO (collectively)
Public & Institutional: 27.53% (from IPO shares)
No ESOP/employee share scheme or convertible securities outstanding.
Lock-up periods: Not specifically disclosed.

Valuation and Peer Comparison

Valuation multiples (P/E, P/B, dividend yield, etc.) and peer comparables are not disclosed. No specific peer symbols or sector performance tables included in the document.

Analyst Research, Price Targets, and Opinions

No explicit analyst coverage, price targets, or formal opinions included.

IPO Allotment Result and Subscription Outcomes

Final subscription levels by tranche, institutional/retail book quality, and first-day allocation results are not disclosed.

Listing Outlook: Implications for Investors

ISF Group Berhad enters the market with strong revenue growth, rising profit margins, robust cash generation, and a well-capitalized balance sheet post-IPO. The offer’s focus on expansion and working capital signals confidence in continued order book conversion and sector prospects. Promoter control is substantial, and the lack of a fixed dividend policy means returns are likely to be reinvested for growth rather than distributed in the near term.

Given the healthy financials, low gearing after the IPO, and a sizeable order book, the listing is well-positioned for a positive market reception, provided the company maintains contract wins. Investors should, however, consider the non-recurring nature of project revenue and related-party transactions. The offer price of RM0.33 per share, with improved gearing and working capital, suggests a fair valuation for an expanding infrastructure player.

Estimated first-day trading range: Not specified in the document, but the combination of strong growth, low gearing, and a substantial order book suggests potential for listing at or above the offer price, assuming no adverse market events.

How to Apply for ISF Group Berhad IPO

• Application channels: White Application Form (individuals, non-individuals), Electronic Share Application (ATMs and internet banking of major banks), Pink Form (eligible persons)
• Key banks: Affin Bank, Alliance Bank, AmBank, CIMB, Maybank, Public Bank, RHB, and select securities firms
• Application window: 8 January 2026, 10:00 a.m. – 14 January 2026, 5:00 p.m.
• Minimum application: 100 shares or multiples thereof
• Public results: Issuing House website at srmy.vistra.com

Prospectus Access

The full prospectus and application details are available at www.bursamalaysia.com