Juniper
Manufacturer and exporter of butt weld pipe fittings and welded pipes Pantech Global Berhad (“Pantech Global” or “the Company”) unveiled its prospectus for its initial public offering (“IPO”) and upcoming listing as a Shariah-compliant stock on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
This milestone elevates Pantech Global’s profile as a manufacturer of pipes and fittings with production facilities in Malaysia, serving 27 foreign markets in Asia Pacific, the Americas, Europe, and Middle East and North Africa in the last financial year. The listing will reinforce international confidence in Pantech Global’s technical expertise, production capabilities, and commitment to delivering high-quality solutions.
“The Pantech brand is proudly Malaysian, and we are honoured to contribute to the nation’s development as a manufacturing and export hub. Our fluid transmission products showcase Malaysia’s ability to produce reliable, high-quality solutions for demanding industries which require precision and uncompromising standards. Pantech Global’s pipes and fittings are designed, manufactured, and tested to meet strict international certifications,” said Pantech Global Group Managing Director Adrian Tan.
“Our proposed listing marks a strategic step in our global growth aspirations. We are focused on our approach of delivering solutions that meet customers’ technical specifications in a timely manner and strengthening longstanding relationships with on-ground partners in international markets. These partnerships provide invaluable local insights that enhance our offerings and market presence. Transitioning into a public listed entity under Pantech Global will further elevate our profile as a true Malaysian manufacturer and reinforce our role in contributing to the country’s economy,” Tan added.
The IPO exercise is expected to raise approximately RM178.32 million through the public issue of 262,228,000 new ordinary shares (“IPO Shares”) at RM0.68 each per share. Based on the enlarged issued share capital of 850,000,000 shares upon listing and IPO price, the expected market capitalisation is RM578.00 million. Pantech Global’s listing marks the first Main Market IPO in 2025.
A retail tranche of 21,250,000 IPO Shares is made available for application by the Malaysian public. The application period closes on 19 February 2025, ahead of the balloting on 24 February 2025. The listing is targeted for 3 March 2025.
The proposed utilisation of the RM178.31 million proceeds to be raised is as follows:
- 37.75% or RM67.32 million for business expansion;
- 36.27% or RM64.68 million for capital expenditure;
- 12.74% or RM22.72 million as working capital;
- 8.41% or RM15.00 million for repayment of bank borrowings; and
- 4.83% or RM8.60 million to defray listing expense
The proceeds utilisation is part of the Company’s three-pronged strategy for sustainable growth. Business expansion entails establishment of a new factory and corporate head office in Selangor to broaden range of fittings manufacture, setting up a new warehouse in Johor to improve order fulfilment, and setting up a new pickling facility in Johor to accommodate longer pipes.
Pantech Global is acquiring its rented factory in Klang and operational land in Johor as part of the chain listing. The Company also plans to purchase, upgrade and replace machinery and equipment as well
as components to enhance production capabilities and efficiency. These include new automated machines to enhance its production capabilities and efficiency as some of the machineries have automatic features which would reduce its reliance on manual labour.
Pantech Global manufactures and exports butt weld pipe fittings and stainless-steel welded pipes that can withstand high temperatures, high pressure, corrosive substances and harsh environments. These are used in various industries involving fluid transmission, including oil and gas, petrochemical, chemical, semiconductor, water treatment and shipbuilding.
The Company principally operates in Malaysia, with the head office located in Klang, Selangor, and manufacturing facilities in Klang, Selangor and Pasir Gudang, Johor. Pantech Global mainly serves customers in the United States, Malaysia, Taiwan, Indonesia, Canada, and Europe, which collectively represented 93.80% and 92.01% of its total revenue for the financial year ended 29 February 2024 (“FYE 2024”) and the 6-month financial period ending 31 August 2024 (“FPE 2025”), respectively.
In 2023, Pantech Global commanded 66% of Malaysia’s export market share for butt weld pipe fittings, and 16% of Malaysia’s production market share for stainless steel welded pipes. Pantech Global’s FYE 2024 revenue stood at RM440.94 million, with 72.56% coming from foreign markets. For the FPE 2025, Pantech Global recorded RM264.97 million in revenue, of which 75.58% came from foreign markets.
In total, the IPO offers investors a 30.85% stake in the Company, with the remainder to be held by the Main Market-listed parent to the Company, Pantech Group Holdings Berhad. Alliance Islamic Bank Berhad is the Principal Adviser, Underwriter, and Placement Agent for Pantech Global’s IPO exercise.
