KUALA LUMPUR (Feb 10): Pantech Global Bhd, which manufactures pipe fittings and welded pipes, has opened application for its Main Market initial public offering (IPO) at 68 sen per share.
The IPO, which entails the issuance of 262.23 million new shares, is expected to raise over RM178 million to fund its expansion plans, according to the prospectus released. There is no separate offer for sale of existing shares.
Application for the IPO closes on Feb 19, 2025, and Pantech Global is scheduled to be listed on March 3, 2025.
“Our proposed listing marks a strategic step in our global growth aspirations,” said Pantech Global managing director Adrian Tan.
At the IPO price, Pantech Global will have a market capitalisation of RM578 million and will be valued at 12 times its earnings for the financial year ended Feb 29, 2024 upon listing. The listing will offer investors up to a 30.85% stake in the firm controlled by Pantech Group Holdings Bhd (KL:PANTECH).
Pantech Global has a geographical reach spanning 27 foreign markets, held a 66% share of Malaysia’s export market for butt-weld pipe fittings in 2023, and supplies 16% of the country’s stainless-steel welded pipes, according to its prospectus.
Its products cater to the upstream, midstream, and downstream segments of various industries, including petroleum, water, chemicals, food and beverage, shipbuilding, pharmaceuticals, power generation, and semiconductors.
The company has earmarked 74% of the IPO's proceeds for expansion and capital expenditure, 13% for working capital, and 8% for loan repayment. The rest will be set aside to cover estimated listing expenses.
Under the public issue, Pantech Global is allocating 21.25 million new shares to the Malaysian public via balloting, with half reserved for Bumiputera investors. Additionally, 29.75 million IPO shares will be offered to eligible individuals.
Through private placements, Pantech Global will also sell 69.98 million shares to selected investors and 106.25 million shares to approved Bumiputera investors.
Meanwhile, shareholders of parent company Pantech Group are entitled to one IPO share for every 25 existing shares held. Post-listing, Pantech Group will remain the major shareholder of Pantech Global, holding a 69.15% stake.
Pantech Global reported a profit after tax of RM49.71 million and revenue of RM440.94 million for 2024.
Alliance Islamic Bank Bhd is the principal adviser, underwriter, and placement agent for the IPO.