ISF Group Berhad
Date of prospectus: 10 December 2025

ISF Group Berhad IPO: In-Depth Investor Analysis, Financials, Expansion Strategy, and Listing Outlook

ISF Group Berhad, a leading Malaysian player in the supply and installation of piping systems for end-user premises and water/sewer infrastructure, is launching its IPO on Bursa Malaysia’s ACE Market. This comprehensive analysis covers the IPO structure, financial health, use of proceeds, sector trends, management, risk factors, and expected listing performance, offering essential insights for institutional and retail investors, market analysts, and financial commentators.

IPO Snapshot: ISF Group Berhad (IPO Symbol: Not Disclosed)

ISF Group Berhad’s IPO brings to market a business focused on piping systems and infrastructure, a sector with robust industrial, commercial, and residential demand in Malaysia. The company’s fundraising and share allocation strategy signal a growth-driven story underpinned by expansion, capacity building, and brand strengthening.

Use of IPO Proceeds: Fueling Growth and Expansion

ISF Group Berhad is channeling the IPO proceeds primarily into expansion and operational capacity, underscoring a growth-driven narrative. Key allocations include:

• New Head Office and Storage Facility (Johor): RM10.25 million (entirely from IPO proceeds) for land acquisition, construction, interior fit-out, office equipment, and a 96.72kW solar photovoltaic system.
• Geographical Expansion: RM0.35 million to set up new regional offices in the Central and Northern Regions of Malaysia (office set-up and rental for 24 months).
• Renovations: RM0.75 million for the conversion and upgrade of additional office space for future growth.
• Machinery and Equipment Purchase: RM1.79 million for new construction and project equipment (vibro-hammer, backhoes, crane lorry, passenger van).
• Workforce Expansion: New hires planned for engineering, BIM modeling, quantity surveying, accounts, and administration.

No material allocation for debt repayment, signaling a focus on scale and service delivery rather than deleveraging.

IPO Placement and Issuance Breakdown

Share allocation post-IPO is designed to ensure liquidity and broad investor participation:

• ASF (Promoter/Family Vehicle): 60.00% of total shares post-IPO
• Public Shareholding Spread: 27.41%
• Independent Directors and Key Senior Management: Each allocated 0.03% (300,000 shares) via Pink Form
• Offer for Sale: 90,000,000 shares, mechanism not further detailed in the disclosure

Investor Participation and Book Quality

Anchor and institutional investor details, as well as subscription levels, are not disclosed. No pre-listing disposals or sales by early shareholders are explicitly detailed. The allocation to public and independent parties, and the presence of a substantial public float, suggest a design for broad market engagement and liquidity. The book is expected to be supported by institutional and retail interest, given the sector’s profile and the company’s revenue scale.

Deal Parties and Structure

Underwriters, global coordinators, sponsors, and bookrunners are not explicitly named in the available disclosure. No mention of stabilization or over-allotment options (greenshoe) is made. Based solely on the professional structure of the offer and the presence of a public float above 25%, listing day performance may benefit from institutional support and index inclusion eligibility.

Business Model, Revenue Streams, and Geographic Reach

ISF Group Berhad delivers a comprehensive suite of services in the supply and installation of piping systems for:

• End-User Premises: Internal and external piping for industrial, commercial, and residential buildings (internal piping, process piping, water supply, and sewer infrastructure).
• Maintenance & Repair: Scheduled and ad-hoc maintenance for installed systems.
• Geography: Operations are primarily in Malaysia, with key markets in Johor, Penang, Selangor, Melaka, Negeri Sembilan, and Kuala Lumpur.
• Customer Segments: Main contractors, project management companies, M&E contractors, property developers, business owners, and direct property owners.

Revenue is generated from fixed lump sum contracts, purchase orders, and work orders, with a project-based business model.

Industry Definition, Market Size, and Sector Dynamics

The company operates in the potable water and sewer piping industry focusing on end-user premises—a sector characterized by:

• Strong demand from industrial, commercial, and residential property development.
• Malaysia’s industrial property supply (2024): 123,000 units, with CAGR 2020-24 at 1.1%.
• Digital economy sector (2024): RM451.3 billion gross value added, CAGR 2020-24 at 9.0%.
• Data centers and industrial facilities are fast-growing end-user segments.

No explicit market share or ranking is disclosed for ISF Group Berhad, but the company is positioned as a major player in industrial and data center piping contracts.

Financial Health and Performance Metrics

ISF Group Berhad shows robust revenue growth and diversified income streams.

Revenue CAGR (2022 to FPE 2025): Approximately 41.6% (inferred from revenue figures above).

Segment Revenue Mix (FPE 2025):

• Supply and installation of piping systems for end-user premises: RM38.6 million (64.8%)
• Water supply and sewer infrastructure piping: RM20.7 million (34.7%)
• Maintenance and repair: RM0.28 million (0.47%)

Market Position and Competitive Advantages

ISF Group Berhad’s strengths are anchored in:

• Longstanding relationships with main contractors, M&E partners, and property developers—enabling both indirect (73.56% of FPE 2025 revenue) and direct (26.44%) distribution models.
• Experienced management and technical team: Directors bring 13 to 46 years of sector experience. Key senior managers have 8 to 15 years of relevant expertise.
• ISO certifications: ISO 14001:2015 (Environmental), ISO 45001:2018 (Occupational Health & Safety).
• Brand value: Locally registered trademarks supporting market positioning.

Management Team and Board

The Board is led by:

• Ai Boon Chen (Managing Director): 13 years’ experience, engineering and MBA background.
• Ai Sew Fuat (Executive Director): 46 years’ industry experience.
• Lim Ay Yum (Executive Director): 44 years’ sector experience.
• Yap Chui Fan (Independent Non-Exec Chair): 40 years in accounting, MIA/ACCA member.
• Other independent directors: Christine Toh Hung Mei, Sim Seng Loong @ Tai Seng, Ir. Chow Kai Hoon.

Key senior management: Norliana Binti Noor Ezat, Siti Hajar Binti Ismail, Heng Eik Woei, Jenylex Kumil, Muhammad Amirul Bin Muhammad Amri.

Sector, Regional, and Economic Trends

ISF Group Berhad operates in an expanding market, with several notable trends:

• Growth in industrial properties, data centers, and digital infrastructure in Malaysia, fueling demand for piping solutions.
• High revenue contribution from Johor and Penang, the two fastest-growing geographies.
• Sector resilience: No material seasonality or interruptions noted in recent years.
• Macroeconomic context: Malaysia’s digital economy gross value added rose to RM451.3 billion in 2024.

IPO timing aligns with a strong sector and macro backdrop, supporting listing prospects.

Recent Developments

• Acquisition of YPSB: Completed 13 November 2025; now a wholly-owned subsidiary.
• Ongoing investments in new facilities, regional expansion, and machinery as part of the IPO growth plan.
• New head office and storage facility project in Johor, targeted for completion in Q2 2028.

Risk Factors and Quantified Exposures

Key risk exposures include:

• Project-based revenue: Revenue is not recurring; depends on new project wins.
• Customer concentration: Top five customers accounted for >10% revenue in certain years, but no single customer dependence after project completion.
• Supplier concentration: Top five suppliers accounted for 39.36% of costs in FPE 2025.
• Regulatory/contractual risk: Must comply with CIDB, SPAN, MOF, and local authority licensing.
• No material dependence on any single contract, IP, or license for profitability.

Growth Strategy and Expansion Pipeline

ISF Group Berhad’s expansion is underpinned by:

• New head office & storage facility (Johor): RM10.25m, completion targeted Q2 2028.
• Regional offices: Central Region (operational Q4 2026), Northern Region (Q2 2027), RM0.35m investment.
• Machinery & vehicles: RM1.79m for new equipment within 24 months post-IPO.
• Workforce growth: Additional BIM modellers, quantity surveyors, account executives, and administrative staff.
• Maintenance and repair services: Targeting recurring revenue via scheduled service contracts.

Ownership and Lock-ups

Pre- and post-IPO shareholding:

No explicit lock-up periods or ESOPs are disclosed.

Valuation and Peer Comparison

Peer company financials (as disclosed):

No explicit P/E, P/B, EV/EBITDA, ROE, or dividend yields are disclosed for ISF Group Berhad or peers.

Research & Opinions

No analyst coverage, price targets, or institutional opinions are disclosed in the document.

IPO Allotment Results

Final subscription outcomes by tranche (retail/institutional) are not disclosed.

Listing Outlook: Subscription, Trading Range, and First-Day Performance

Based on the company’s strong revenue growth, robust sector demand, significant investment in capacity, and a public float above 25%, ISF Group Berhad’s IPO appears fundamentally attractive for investors seeking exposure to Malaysia’s infrastructure and industrial growth.

While the lack of pricing, P/E, and subscription data precludes a precise first-day trading range forecast, the fundamentals support a positive listing outlook with potential for strong initial demand and active trading—especially given sector trends, the local market’s appetite for infrastructure stories, and the company’s public engagement strategy.

Prospectus Access

Website to obtain the prospectus: www.isfgroup.com.my

Application channels, steps, or eligibility are not disclosed.