KUALA LUMPUR (Feb 24): The initial public offering (IPO) of Pantech Global Bhd has attracted RM663.63 million worth of retail interest — more than three times the RM178 million the pipemaker intends to raise from the listing exercise.

The 21.25 million shares it allocated for the public under its IPO were oversubscribed by 44.93 times, with 20,240 applications received seeking 975.93 million new shares at an issue price of 68 sen apiece, according to Malaysian Issuing House Sdn Bhd in a statement on behalf of Pantech Global.

At 68 sen per share, the IPO values Pantech Global at a market capitalisation of RM578 million, with a price-to-earnings ratio of 12 times its trailing earnings. Pantech Global reported a profit after tax of RM49.71 million and revenue of RM440.94 million for 2024.

Of the applications received, the Bumiputera portion received 9,115 applications for 368.42 million shares, representing an oversubscription of 33.67 times. The non-Bumiputera portion recorded 11,125 applications for 607.51 million shares, representing an oversubscription rate of 56.18 times.

Including the 21.25 million public portion, Pantech Global's IPO involved an issuance of 262.23 million new shares, of which 106.25 million were for private placement to Bumiputera investors and 69.98 million shares to selected investors — all have been fully subscribed.

The 29.75 million shares to eligible individuals and the 35 million shares to shareholders of its parent company, Pantech Group Holdings Bhd (KL:PANTECH) were also taken up. Post-listing, Pantech Group will remain a major shareholder in Pantech Global, holding a 69.15% stake.

Notices of allotment will be posted to all successful applicants on Friday. The pipe fittings and welded pipes manufacturer is scheduled for listing on the Main Market of Bursa Malaysia next Monday (March 3).

Pantech Global has a geographical reach spanning 27 foreign markets, with 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.

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.

Alliance Islamic Bank Bhd is the principal adviser, underwriter and placement agent for the IPO.

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Pantech Global opens application for Main Market IPO at 68 sen per share