KUALA LUMPUR (Jan 7): Pioneer Heat Holdings Bhd has filed its prospectus exposure with Bursa Malaysia in preparation for a listing on the ACE Market, as the mechanical and civil engineering services provider seeks to raise funds to finance the expansion of its operational footprint.

According to the prospectus exposure, the proposed initial public offering (IPO) will involve a public issuance of 86.7 million new shares, representing 25% of the company’s enlarged share capital, alongside an offer for sale of 17.35 million existing shares, or 5%.

Upon completion of the listing, Pioneer Heat will have an enlarged issued share capital of 346.9 million shares, up from 260.2 million shares currently.

The IPO price and the indicative market capitalisation upon listing have yet to be determined.

First incorporated in March 2019, Pioneer Heat is principally involved in mechanical engineering services and civil engineering projects for the construction of industrial and ancillary facilities.

Its mechanical engineering services include piping system engineering and specialised services such as heat treatment, flange management and non-destructive testing, primarily serving the oil and gas, petrochemical, utility and manufacturing sectors.

For the financial year ended March 31, 2025, the company recorded a revenue of RM42.97 million compared with RM31.47 million a year earlier. Profit after tax increased to RM5.16 million from RM3.21 million.

According to the prospectus exposure, the proceeds raised from the public issue will be used mainly to set up new operational offices, including a new headquarters in Sendayan, Negeri Sembilan, and a new office and workshop in Sarawak, as well as for the purchase of machinery and equipment, working capital and listing expenses.

The Sendayan headquarters is intended to house administrative offices, a workshop and a warehouse to support fabrication works, heat treatment services and equipment maintenance, while the Sarawak facility is aimed at expanding the company’s capacity to undertake larger projects in East Malaysia.

Following the IPO, the company’s three promoters — Wong Hing Chong, Wong Hing Kok and Wong Heng Chong — will see their combined direct shareholding reduced to 53.7% from 78.2% currently.

They will remain as substantial shareholders. Hing Chong and Hing Kok will each see their direct stakes diluted to 20.1% from 29.4%, while Heng Chong’s holding will be pared down to 13.5% from 19.4%, based on the enlarged share capital after listing.

Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the proposed listing.