Not affected by steel tariffs, Gaofeng Group’s half-day premium on first day of listing was 6.94%

February 10, 2025

(Kuala Lumpur, 10th) Colform (0341, ACE Market) made its debut on the Malaysian stock market today, closing at 38.5 sen halfway through the day, a premium of 2.5 sen or 6.94% over the initial public offering price of 36 sen, with a trading volume of 105.85 million shares, making it the third most popular stock.

Colform opened at 40 sen this morning, with the first transaction reaching 17.748 million shares, and the stock rose to a high of 41 sen during the session.

Colform raised RM41.19 million through its initial public offering, with an oversubscription of 41.82 times.

Of the RM41.19 million raised by the company, RM18.09 million will be used as working capital, RM9 million will be used to build a color coil coating production line at the Kota Kinabalu plant, RM4.5 million will be used to build a storage facility, RM5.1 million will be used as expansion funds to enter West Malaysia, and the remaining RM4.5 million will be used to pay for listing expenses.

Gaofeng Group Managing Director Jiang Guoxiong said that for the company, listing on the ACE Market is a milestone achievement, symbolizing Gaofeng Group’s determination to expand its business territory throughout Malaysia.

He continued that the funds raised from the IPO will enable the company to strengthen operations, improve product supply, and explore new market opportunities.

Lock in raw material prices in advance to ensure profits

When asked whether Gaofeng Group would be affected by the 25% tariff imposed by Trump on steel and aluminum imports in the United States, Jiang Guoxiong said that since the company does not export its products to the US market, it will not be directly affected by the tariff policy.

In response to the challenge of rising raw material prices, he pointed out that when Peak Group obtains new projects, it will lock in most of the raw material prices in advance to ensure stable profits while reducing the impact of fluctuations in the steel supply chain on costs.

Looking ahead, he said that the downstream steel industry in Sabah and Sarawak is expected to grow steadily.

“We believe that Malaysia’s downstream steel industry will continue to grow, driven by the recovery of the construction industry and the government’s policy support.”