09/01/2026

BIZ & FINANCE FRIDAY | JAN 9, 2026

14

Ű BY JOHN GILBERT sunbiz@thesundaily.com

ISF Group sees data centres as major revenue contributor

KUALA LUMPUR: ISF Group Bhd, an end-to-end piping solutions provider, expects data centres to be a major contributor to revenue growth in the coming years, supported by the continued expansion of investments into the sector in Malaysia. Managing director Jeff Ai Boon Chen said the market continues to show strong momentum in data centres, with sustained growth anticipated over the next two to three years. “While data centres remain a significant focus, we are not reliant on this segment alone. We are deli berately maintaining a balanced growth strategy across all segments, including industrial and commercial ones, while strategically capitalising on the expected expansion of data centres in the near term,” he told reporters after the company’s initial pubic offering (IPO) prospectus launch yesterday. He said Malaysia’s data centre industry is projected to rise at a compound annual growth rate of 22.4% between 2025 and 2030, reaching RM59.6 billion by 2030. The group commenced business operations in 2001 as a trader of plumbing materials. Since then it has built up a proven track record and undertaken numerous projects, including large-scale ones, across a diversified range of end-user premises. These projects span in dustries, data centres, residential, commercial, institutional, healthcare, and infrastructure such as power plants and mass transit facilities. As of Dec 9, 2025, the group’s unbilled order book stood at RM120.68 million, mainly com prising RM117.47 million from end user premises piping projects, with the remaining RM3.21 million from infrastructure piping projects. This is expected to provide earnings visibility to the group up to the financial year ending Dec 31, 2028.

entitlement date, which is Dec 3, 2025, on the premise that there was sufficient time for the identified investors to provide the necessary documentation. “At the time of the announcement of the entitlement date, there was no indication suggesting that the identified investors would be unable to meet the deadlines set by AAX. “It was reasonable to expect that the AAX private placement would be completed within the approved timeframe, that is, by Dec 31, 2025, in 75% of the country’s electricity demand, are ready to invest in clean energy solutions – over 83% of companies plan to increase invest ment in electrifying operations, lowering emissions, and reducing energy costs; 72% are considering on site renewable installations such as rooftop solar panels; and more than half (54%) are exploring opportunities to sell surplus energy back to the grid. Energy ambitions also vary across industries with over 90% of manufacturing and IT businesses expect double-digit growth in elec project opportunities in the northern region, where a single office can effectively serve multiple surround ing states. Rather than expanding excessively, we are taking a targeted approach, with plans to establish these offices by the second quarter of 2026,” Ai said. To strengthen its core business activities, the group intends to invest in new plants and machinery, including vibro machines, bulk packers, and lorry cranes. ISF Group aims to raise RM61.15 million from its IPO at a price of 33 sen per share. The proceeds will be utilised for establishing and expanding opera tional facilities (RM11.35 million or 18.56%), developing existing business activities (RM2.05 million or 3.35%), expanding the workforce (RM1.85 million or 3.03%), loan repayments (RM1.2 million or 1.96%), working capital requirements (RM39.9 million or 65.25%), and estimated listing expenses (RM4.8 million or 7.85%). ISF Group’s IPO entails a public issue of 185.3 million shares, repre senting 18.53% of its enlarged issued share capital, as well as an offer for sale of 90 million shares, representing 9% of its enlarged issued share capital. Of the 185.3 million shares, 50 million will be allocated to the Malaysian public via balloting, 15 million to eligible directors, em ployees and contributors under the Pink Form Allocation, 35 million through private placement to selected Bumiputera investors ap proved by the Ministry of Investment,

o However, it will maintain a balanced growth strategy across all segments, including industrial and commercial ones “We plan to expand our technical and professional workforce by approximately 20%. From a current headcount of about 285 employees, we intend to increase our workforce to approximately 302, with the additions primarily comprising professional and technical personnel,” Ai said. Moving on, the group plans to construct a new head office and storage facility in Johor, while establishing additional offices to expand its geographical presence in the northern and central regions. In parallel, the existing Selangor office will be expanded to support increased manpower and opera tional capacity. “We plan to establish offices in the central and northern regions to support our growth strategy. The central region, including Kuala Lumpur, Malacca and Negeri Sem bilan, currently contributes approxi mately 20% of our revenue, and having a local presence will allow us to better support and scale this segment. “We are also seeing increasing

From left ISF Group executive directors Lim Ay Yum and Ai Sew Fuat; Jeff Ai; independent non-executive chairperson Yap Chui Fan; Alliance Bank Malaysia corporate and institutional banking group chief Teoh Chu Lin; coverage and origination of Islamic capital markets head/senior vice-president Lim Shueh Li; and corporate finance, Islamic capital markets head/senior vice-president Tee Kok Wah.

million, based on its enlarged issued share capital of 1 billion shares and IPO price of 33 sen per share. ISF Group is scheduled to be listed on the ACE Market of Bursa Securities on Jan 28. Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for ISF Group’s IPO.

Trade and Industry (Miti), and the remaining 85.3 million through private placement to selected investors. In addition, all 90 million shares will be placed privately with selected Bumiputera investors approved by Miti. Upon listing, the group will have a market capitalisation of RM330

Capital A: Corporate exercise on course despite Bursa’s time rejection KUALA LUMPUR: Capital A Bhd has clarified that Bursa Malaysia Securities Bhd’s decision not to approve its application for a time extension to complete share distribution has no material impact on the group’s ongoing corporate exercise. AAX private placement. “The distribution remains subject to the completion of the private placement by AAX, as the new AAX shares must be issued before they can be distributed to entitled Capital A shareholders. The filing said that Capital A had proceeded to announce the line with AAX’s target completion date,” it said. entitlement date (supplemental court order),” it said. “In this regard, the entitlement date was carefully planned to provide sufficient buffer for Capital A to obtain the supplemental court order,” said Capital A. – Bernama Malaysian businesses at forefront of major energy transformation: EY research In a statement yesterday, the airline company said that there is no change to the group’s strategy, and the only impact is a revision to the completion timeline. The shares will be allotted and issued by AirAsia X Bhd (AAX) simultaneously with the placement shares issued in the “Following the approval granted by Bursa Securities to AAX for an extension to complete its private placement by Jan 19, 2026, Capital A’s timeline will align accordingly. Upon issuance, the new AAX shares will be allotted to Capital A shareholders as planned,” it said. The company also stated that the announcement of the entitlement date was a necessary step to enable Capital A to submit a supplemental application to the high court for an ancillary order pursuant to Section 116 of the Companies Act 2016. “This application relates to the reduction of the company’s issued share capital pursuant to the distribution, amounting to approximately RM2.7 billion, based on the closing market price of AAX shares of RM1.62 on the The quantum of the capital reduction can only be determined by reference to the closing market price of AAX shares on the entitlement date. “As such, the application for the supplemental court order could not be made until the entitlement date has been announced.

PETALING JAYA: Malaysian busi nesses are at the forefront of a major energy transformation, as new research reveals surging electricity demand, ambitious sustainability targets and growing expectations for smarter, greener energy solutions. According to EY’s Navigating the Energy Transition Research Pro gramme, 91% of Malaysian businesses expect electricity use to rise sharply in the next three years, while 75% anticipate more complex energy needs driven by rising and unstable energy costs (68%); availability and

“Energy is now a competitive asset. Businesses that embrace smarter, greener solutions will unlock growth and resilience. Collaboration between companies, energy providers, and policymakers is critical to Malaysia’s energy future,” said Mark Bennett, EY Asia-Pacific energy and resources customer experience transformation leader and partner at Ernst & Young Consulting Sdn Bhd. With electricity demand expected to grow by between 60% and 100% by 2050, Malaysia’s energy ecosystem is at a turning point.

tricity use; more than a quarter of businesses, topped by retail and transportation companies, rank sus tainability as their top energy goal and construction firms are emerging as leaders in on-site generation adoption. As businesses electrify operations and invest in renewables, Malaysians can expect cleaner air, expanded EV infrastructure, and more resilient energy systems. However, rising energy costs and infrastructure gaps could affect affordability and reliability if not managed proactively.

reliability concerns (80%) and decar bonisation imperatives (82%) This shift is fuelled by electrification, adoption of electric vehicle and digital technologies such as automation and artificial intelligence. The findings come as Malaysia accelerates its National Energy Transition Roadmap, which aims for 70% renewable energy by 2050. In 2026, initiatives such as the Solar Accelerated Transition Action Pro gramme take effect. The survey finds that businesses, which are responsible for more than