KUALA LUMPUR (Jan 8): Welded pipe manufacturer Pantech Global Bhd entered into an underwriting agreement with Alliance Islamic Bank in conjunction with its initial public offering (IPO) on the Main Market of Bursa Malaysia.
The company is to be listed on Bursa in the first quarter of 2025 with Alliance Islamic Bank as the principal adviser, underwriter, and placement agent.
According to the company’s statement on Wednesday, Alliance Islamic Bank will underwrite a total of 86.0 million issue shares as part of the public issue of the IPO, of which the offer price will be determined at a later date.
Pantech Global’s IPO exercise encompasses a public issuance of 262.23 million new ordinary shares, representing approximately 30.85% of its enlarged share capital.
Under the proposed IPO, the public issue comprises 21.25 million shares to the Malaysian public and 29.75 million shares for eligible persons.
The company will also set aside 106.25 million shares for Bumiputera investors, and 69.98 million shares for selected investors through private placement.
Further, 35.0 million shares will be made available for application by entitled shareholders of Pantech Group.
The proceeds to be raised from the public issue will accrue entirely to Pantech Global, which plans to use them for the expansion of facilities and a new corporate head office, to acquire lands and buildings, to purchase and upgrade machineries, and to repay bank borrowings. The funds will also be used to fund its working capital.
“The proposed listing will elevate our profile as a Malaysian manufacturer and exporter, reinforcing confidence in our technical expertise, production capabilities, and commitment to delivering high-quality solutions to global industries,” Pantech Global group managing director Adrian Tan said in a statement.
Pantech Global is involved in the manufacturing of butt weld pipe fittings and stainless-steel welded pipes in Klang and Johor.
The company serves a diverse global market comprising Asia Pacific, the Americas, Europe, and Middle East and North Africa regions.
Its key export destinations include the US, Canada, Mexico, Netherlands, Germany, the UK, Taiwan, and countries in the Asia Pacific region, Türkiye, Egypt, and the United Arab Emirates.