KUALA LUMPUR (July 21): Engineering services firm Pioneer Heat Holdings Bhd has signed an underwriting agreement with Malacca Securities Sdn Bhd for its initial public offering (IPO) on the ACE Market.
Malacca Securities will underwrite 27.75 million of these shares, split between 17.35 million shares for the Malaysian public and 10.41 million shares reserved for eligible directors, employees and other individuals who have contributed to the group’s growth.
The remaining 76.29 million shares will be placed out with selected investors.
“The signing of this underwriting agreement marks an important milestone for Pioneer Heat as we move closer to our listing on the ACE Market,” said Pioneer Heat chief executive officer and executive director Wong Wei Ken in a statement on Tuesday.
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.
A portion of the IPO proceeds will be used to set up new operational offices, including a new headquarters in Sendayan, Negeri Sembilan, and a new office and workshop in Sarawak.
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.
The rest of the IPO proceeds will be channelled towards the purchase of machinery and equipment, working capital, as well as listing expenses.
According to the company’s prospectus, the 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.
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.
Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the proposed listing.