KUALA LUMPUR (Nov 15): Pipe-and-valve maker Pantech Group Holdings Bhd (KL:PANTECH) said it has obtained approval from the Securities Commission Malaysia (SC) to list two wholly owned subsidiaries on the Main Market of Bursa Malaysia via a special purpose vehicle.
The special purpose vehicle, Pantech Global Bhd, was formed for the listing of Pantech Stainless & Alloy Industries Sdn Bhd (PSA) and Pantech Steel Industries Sdn Bhd (PSI).
Pantech Global is involved in the manufacturing of butt weld pipe fittings and stainless-steel welded pipes in Klang and Johor.
Pantech Global’s initial public offering (IPO) entails the issuance of 262.23 million new shares, representing 30.85% of its enlarged issued share capital. Post-IPO, Pantech Group will own 69.15% in Pantech Global.
Under the public issue, Pantech Global is allocating 21.25 million new shares to the Malaysian public via balloting, with half set aside for Bumiputera investors. The company is also selling 29.75 million IPO shares to eligible persons.
Shareholders of parent Pantech Group, meanwhile, will be entitled to one IPO share of Pantech Global for every 25 existing shares held, for a total of 35 million shares.
Pantech Global will also market 69.98 million IPO shares through private placement to selected investors, and set aside 106.25 million IPO shares to be placed out to approved Bumiputera investors.
The proceeds to be raised from the public issue will accrue entirely to Pantech Global, who plans to use it for the expansion of facilities and a new corporate head office, to acquire lands and buildings, to purchase and upgrade machineries, and repay bank borrowings. The funds will also be used to fund its working capital.
Alliance Islamic Bank Bhd has been appointed as the principal adviser for the proposed listing, which is expected to be completed by the first quarter of 2025.