This article first appeared in Capital, The Edge Malaysia Weekly on June 29, 2026 - July 5, 2026

THREE companies will make their debut on the ACE Market of Bursa Malaysia this week. This will bring the total number of initial public offerings (IPOs) on the Main Market and ACE Market to 31 year to date.

The week will start off with the listing of bakery chain RT Pastry Holdings Bhd (KL:RT) on June 29, followed by customised industrial lifting and handling equipment manufacturer Liftech Group Bhd (KL:LIFTECH) on June 30 and industrial chemicals distributor Eckem Holdings Bhd (KL:ECKEM) on July 3.

Of the three, Liftech will have the largest market capitalisation at RM91.33 million upon listing at 29 sen per share. Eckem’s market capitalisation is expected to come in at RM75 million based on the IPO price of 12 sen, while RT Pastry’s IPO price of 18 sen per share will see the company’s market capitalisation totalling RM61.03 million.

Liftech is looking to raise the most from the IPO — RM23 million in gross proceeds from 79.23 million shares, or 25.2%. It has an offer for sale portion of 15.8 million shares, equivalent to 5%, under which selling shareholders will receive about RM4.6 million.

Meanwhile, RT Pastry and Eckem are seeking to raise RM16.48 million (from 91.54 million shares; or 25.2%) and RM15 million (from 125 million shares; or 20%) respectively from the public portion of their IPO exercise. Eckem’s IPO also includes an offer for sale of 62.5 million shares, or 10%, where the promoters are seeking to raise RM7.5 million for themselves.

RT Pastry was established by Lu Chun-Neng, a Taiwanese national. Lu relocated to Malaysia in 2003 and launched the group’s first outlet in Taman Danau Desa, Kuala Lumpur, with his wife’s family.

Over the years, RT Pastry has transformed into a vertically integrated group that engages in the business of manufacturing, distribution and sale of bakery products in Malaysia. The group currently has 17 outlets in the country.

With the RM16.48 million gross proceeds raised, RM7.63 million, or 46%, will be used for the opening of new outlets, while RM3.82 million, or 23%, will be used to repay bank borrowings. A small portion of RM895,000 will be allocated for the purchase of new machinery and equipment and the remaining RM4.13 million, or 25%, will be used for listing expenses.

RT Pastry plans to add seven new outlets and one large-scale outlet by 2027, and seven new outlets and one large-scale outlet in the following two years.

Part of the group’s plan is to acquire and set up a new premises for its operations given the space constraints in its current storage area. It is in the process of looking for a new industrial lot in Seri Kembangan, Selangor, or its surrounding areas. The group plans to fund the acquisition via bank borrowings, internally generated funds and proceeds from the 2025 disposal of its Balakong plant, which brought in RM15.8 million.

Last year, it initially entered into an offer to purchase a factory in Cheras for RM35 million for its expansion plans but the deal fell through after the offer lapsed. RT Pastry says it has yet to locate another suitable premises.

It is also looking to expand its sales by including services as an original equipment manufacturer (OEM) producer. This would entail manufacturing bakery products at its centralised manufacturing facilities based on recipes developed or provided by other companies.

Based on its prospectus, RT Pastry’s revenue has inched upwards over the last three financial years. It increased from RM55.78 million in the financial year ended Dec 31, 2023 (FY2023) to RM60.27 million in FY2024 before reaching RM60.31 million in FY2025.

However, net profit growth has been uneven, coming in at RM6.23 million in FY2023, then dipping to RM5.01 million in FY2024 before climbing to RM6.01 million in FY2025. Gross margins hovered at 34% to 35% in the last three financial years.

In a June 12 report on the group, TA Securities is forecasting core net profit to come in at RM6.6 million in FY2026; RM7.5 million in FY2027 and RM8.2 million in FY2028. This is premised on stronger sales growth of 9.7% in FY2026; 13.1% in FY2027 and 8.4% in FY2028, supported by new outlets over those years.

TA Securities derived a fair value of 22 sen per share, based on a target price-earnings ratio (PER) of 10 times to 2027 earnings per share (EPS), in line with the valuation multiples of comparable global bakery and food manufacturing peers.

The biggest portion of the RM23 million gross proceeds to be raised by Liftech will be used for the repayment of bank borrowings. The company has earmarked RM13.78 million, or 59.8%, for repayment of loans for the new Bukit Minyak facility, the Kota Kinabalu facility and extension of the Taiping factory. Elsewhere, RM1.72 million, or 7.5%, will be used to purchase new machinery and equipment; RM3 million will be allocated for capital expenditure and working capital and RM4.5 million for estimated listing expenses.

As at end-December 2025, its outstanding borrowings amounted to RM18.8 million, but will be reduced to RM5 million following the proposed repayments. Its gearing ratio will be reduced to 0.08 times upon the repayment of bank borrowings and the issuance of new shares under the IPO.

The new Bukit Minyak facility in Penang provides a larger work area to accommodate increased maintenance activities, inventory storage and operational scaling, with relocation targeted for July this year. In Sabah, the company commenced operations at a dedicated Kota Kinabalu facility in January 2026 to support its longer-term regional expansion in Sabah and Sarawak.

In the last three financial years, revenue totalled RM49.1 million in the financial year ended Dec 31, 2023 (FY2023), RM57.66 million in FY2024 and RM57.86 million in FY2025. Net profit amounted to RM6.72 million in FY2023, but fell to RM6.58 million in FY2024 before increasing to RM6.86 million in FY2025.

Liftech’s unbilled order book stood at RM41.6 million as at May 10, the majority of which can be attributed to design, manufacturing, installation and commissioning projects.

PublicInvest Research derived a fair value of 38 sen on the stock by ascribing 12 times PER to FY2027 EPS. It is a 37% discount to the Bursa Malaysia Industrial Product & Services Index PER of 19 times, which it says is justified given Liftech’s relatively small market capitalisation of below RM100 million.

Eckem is earmarking RM6 million, or 40%, of the total gross proceeds for the construction of a new corporate office, warehouse and laboratory. Total construction cost is estimated at RM12.41 million, and the company intends to fund the remaining RM6.41 million cost through bank borrowings.

The new corporate office and warehouse will support its expansion by providing the necessary space for an increasing workforce as well as enhance its operational efficiency in serving customers in the central region of Peninsular Malaysia. The new corporate office, warehouse and laboratory will have an estimated built-up area of 22,238 sq ft, 51,034 sq ft and 1,500 sq ft respectively.

Eckem has also allocated RM2 million, or 13.33%, for the expansion of new production lines for its rubber products.

Its revenue has been uneven over the last three financial years. From RM37.15 million in the financial year ended Dec 31, 2023 (FY2023), it increased to RM43.93 million in FY2024 before dropping to RM38.66 million in FY2025. Its net profit, however, has been declining over the past three financial years. It fell from RM6.86 million in FY2023 to RM5.65 million in FY2024 and slid further to RM4.48 million in FY2025.

Malacca Securities projects the company’s three-year earnings compound annual growth rate to be 10.1%, with core net profit expected to reach RM5 million to RM6 million over the next three years, on the back of the group’s market expansion in Malaysia and overseas and its doubling of capacity in the rubber production line starting in FY2028.

The research house has assigned a fair value of 14 sen per share for Eckem, indicating a 16.7% upside from the IPO price of 12 sen. Its valuation is based on a PER of 16 times, pegged to FY2027’s EPS of 88 sen.

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