KUALA LUMPUR (Sept 17): Pioneer Heat Holdings Bhd (KL:PIONEER) ended its ACE Market debut on Thursday 5 sen, or 20%, higher than its initial public offering price of 25 sen.
Shares of the mechanical and civil engineering services firm opened at 25.5 sen and climbed as high as 34.5 sen before the day's close. The closing price values the group at RM104.1 million.
The stock's strong showing reflects the IPO's public tranche being oversubscribed nearly 48 times ahead of listing.
Pioneer Heat’s services include piping system engineering and specialised services, such as heat treatment, flange management and non-destructive testing. The company mainly caters to the oil and gas, petrochemical, utility and manufacturing sectors.
The IPO raised RM26.02 million, of which RM21.68 million went to the company and the remaining RM4.34 million to its three promoters: brothers Wong Hing Chong, Wong Hing Kok and Wong Heng Chong.
Proceeds from the IPO have been earmarked for a new headquarters in Negeri Sembilan, and a new office and workshop in Sarawak.
The company is also purchasing machinery and equipment and setting aside some of the funds raised for working capital and to cover listing expenses.
Chief executive officer and executive director Wong Wei Ken said after the listing ceremony that oil and gas, and petrochemicals are expected to remain the group’s main growth drivers, and it is tendering for several projects.
“I cannot disclose too much on the project names, but I can say that we are aiming for a few projects that will hopefully be secured and will be delivered in the coming third and fourth quarters,” Wong told reporters after the listing ceremony.
The group is also looking to expand its presence in Sarawak, where it is licensed to deal directly with Petroleum Sarawak Bhd (Petros) as a contractor.
Beyond oil and gas and petrochemicals, Wong said Pioneer Heat is seeking to diversify its project base into the utilities and manufacturing sectors.
Malacca Securities is the principal adviser, sponsor, underwriter and placement agent for the listing.