KUALA LUMPUR (June 4): Investors scrambled for a piece of Pentech Holdings Bhd ahead of its listing on the ACE Market with demand exceeding the shares on offer by 120.98 times.

Applications totalled 3.78 billion shares worth RM756 million for 31 million shares available for subscription by retail investors under the initial public offering (IPO), according to a statement from the issuing house. The rate of oversubscription was 105 times for the bumiputera portion and 137 times for non-bumiputera.

Investors interest for Pentech was also the strongest since Richtech Digital Bhd's (KL:RTECH) IPO that saw oversubscription rate of over 245 times in February 2025. In terms of value, however, it was dwarfed by SkyeChip Bhd (KL:SKYECHIP) listing that attracted applications worth RM3.04 billion, the largest amount of funds in 16 years.

Notice of allotment will be sent to all successful applicants by June 11 and listing is set for June 15.

Based in Penang, Pentech mainly integrates enterprise information and communication technology infrastructure, supplies hardware and software, and provides cloud and other services. Upon listing, Pentech is expected to command a market capitalisation of RM124 million.

The IPO raised RM34.4 million, of which 70% will be allocated towards expansion, including RM9.4 million to establish a new security operations centre, RM8.1 million to upgrade the operations command centre infrastructure, and RM6.74 million to expand its offerings.

Another RM3.5 million has been earmarked for marketing and promotional activities, RM2.16 million for working capital, while RM4.5 million will be used to defray listing expenses.

There is no accompanying offer for sale, meaning that existing shareholders are not cashing out of the computer infrastructure company under the IPO.

Public Investment Bank is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.