AMS plans a new manufacturing warehouse in Penang

Additional aluminium-processing capacity in Penang

AMS Advanced Material Bhd plans to establish a licensed manufacturing warehouse and office in Penang, Malaysia, serving semiconductor and electrical and electronics customers. Managing director Keh Teng Yang attributed the expansion to full utilisation at the existing plant and sustained customer orders. He expects the new operation to have throughput comparable with the existing facility, at roughly nine to ten tonnes a day.

The group has allocated RM8.1 million of IPO proceeds to the new plant. AMS made its ACE Market debut on Bursa Malaysia on 23 April 2026, opening at 29 sen with 15.91 million shares traded at the opening gong. Keh said he remained optimistic about demand from semiconductor and electrical and electronics customers as production programmes move to Penang.

Manufacturing and distribution allocations

AMS launched its prospectus on 27 March 2026 with a target of raising RM32.77 million. The company's announced expansion allocations comprised:

• RM8.10 million for the Penang manufacturing warehouse.
• RM6.89 million for manufacturing aluminium architectural products.
• RM2.50 million for a distribution point in Kuantan, Pahang.

The programme also set aside RM8.16 million for repayment of borrowings, RM2.67 million for working capital and RM4.43 million for IPO and listing expenses. These amounts were designated uses of the fundraising proceeds.

At the March prospectus launch, Keh projected revenue growth of about 10–20% from the expansion initiatives. He expected the Penang warehouse and Kuantan distribution facility to reach full utilisation within 24 months after listing, with revenue contributions ramping up within 12 months. The group was expanding value-added aluminium processing for semiconductor and engineering-support customers and seeking further projects from existing and new clients.

Earlier listing approval and business plans

AMS had secured approval for an ACE Market listing by 22 January 2026. The company had nearly two decades of experience supplying and processing semi-finished aluminium and copper products. Keh identified access to the equity capital market as a way to accelerate the group's expansion.

The proposed offering combined a public issue of 113 million new shares with an offer for sale of 47 million existing shares. Together they represented 160 million shares, or approximately 26.14% of the enlarged share capital of about 612.01 million shares.

In January, the group's plans encompassed the Penang warehouse, aluminium architectural products, a Kuantan distribution point and entry into scrap-aluminium collection and processing. M&A Securities Sdn Bhd acted as the IPO's principal adviser, sponsor, underwriter and placement agent.