PETALING JAYA: Environmental monitoring and industrial hygiene solutions provider One Gasmaster Holdings Bhd is positioning itself to ride on tighter environmental regulations and rising environmental, social and governance (ESG) compliance requirements as it prepares for its ACE Market debut this month.
The group, which launched its initial public offering (IPO) prospectus today, aims to raise about RM19.38 million through the issuance of 77.5 million new shares at 25 sen each. Based on an enlarged share capital of 310 million shares, One Gasmaster will have a market capitalisation of RM77.5 million upon listing on Jan 27.
Managing director and group CEO Ivan Tan said demand for the group’s services is increasingly driven by long-term structural shifts, rather than short-term economic cycles, as industrial players face growing pressure to comply with environmental, health and safety standards.
“The key drivers are ESG, the government’s push towards net carbon neutrality and stricter regulations,” he said at a press conference. “In Malaysia, the Clean Air Act and sustainability frameworks are becoming more enforced and that is driving demand for our services.”
Founded in 1998, One Gasmaster provides environmental monitoring, gas detection, gas piping and industrial hygiene services, alongside maintenance and calibration solutions.
Its client base primarily comprises industrial plants across manufacturing, oil and gas and related sectors.
Proceeds from the IPO will be channelled towards expanding the group’s capabilities. About 19.41% has been earmarked for its entry into emission control solutions, while 25.22% will go towards setting up new branch offices and calibration laboratories in Johor, Terengganu and Penang. Another 8.66% will be used to establish an additional calibration laboratory at its Damansara headquarters, with the remainder allocated for working capital and listing expenses.
Tan said the move into emission control solutions is a logical extension of the group’s existing environmental monitoring business, allowing it to capture more value from its existing client base.
“Currently, we do post-emission monitoring. When clients see that their readings are not ideal, remedial action is required, such as upgrading or modifying pollution control systems,” he said. “It’s upstream from the same client base, so it gives us the opportunity to upsell and increase revenue contribution.”
The group is also expanding its calibration laboratory capabilities to meet customer demand for faster turnaround times.
“Right now, we have one calibration lab at our headquarters, and we are expanding its capabilities by adding five more scopes,” Tan said. “When we open new branches, they will come with calibration lab capabilities as well, which allows us to sell more services to the same clients.”
While One Gasmaster has projected a compound annual growth rate of about 12% between 2025 and 2029, Tan said, growth will largely be driven by organic demand rather than overseas expansion.
Currently, more than 99% of the group’s revenue is derived from the domestic market, and this focus is expected to remain in the near term.
“We see a lot of opportunities locally because government policies and enforcement on environmental matters are getting stricter,” Tan said, adding that, at the moment, they are concentrating their resources domestically, although they do supply systems to nearby Asean countries through contractors.
On margins, Tan acknowledged that there has been volatility in recent financial periods, mainly due to global economic headwinds that affected industrial customers’ capital expenditure.
“The global tariff and macro uncertainties affected our clients’ production output, and many delayed their expansion plans. However, in the fourth quarter, we are already seeing activity resume as customers become more comfortable operating amid uncertainty,” he said.
To defend margins as the group scales up operations and hires more engineers, One Gasmaster relies on cost-based pricing and close collaboration with manufacturing partners.
“Our pricing structure is cost-based, and we have strong support from our manufacturing partners. We often work together to bid for projects, which helps us mitigate margin pressure,” said Tan.
Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.
