KUALA LUMPUR: Butt weld pipe fittings and welded pipes manufacturer and exporter Pantech Global Bhd (PGB) does not foresee significant impact from the recent US tariffs on steel and aluminum, owing to its downstream business model and diversified global supply chain.
PGB managing director Adrian Tan said unlike upstream producers, which are directly affected by raw material price fluctuations, the company primarily operates in the value-added segment, which mitigates exposure to tariff-related cost increases.
He noted that the company has a proven track record in navigating international trade regulations, having successfully defended itself in anti-dumping and circumvention cases in both the US and European Union markets.
“This experience gives PGB confidence in its ability to maintain competitiveness and market access despite evolving trade policies,“ Tan told reporters at PGB’s prospectus launch today.
Looking ahead, he said PGB continues to explore new opportunities in North Africa (Egypt) and South America (Brazil), ensuring its expansion strategy remains resilient to geopolitical trade shifts.
PGB unveiled its initial public offering (IPO) prospectus and upcoming listing as a syariah-compliant stock on the Main Market of Bursa Malaysia.
“Our fluid transmission products showcase Malaysia’s ability to produce reliable, high-quality solutions for demanding industries that require precision and uncompromising standards. PGB’s pipes and fittings are designed, manufactured, and tested to meet strict international certifications,“ Tan said.
The listing, he added, will mark a strategic step in PGB’s 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 PGB will further elevate our profile as a true Malaysian manufacturer and reinforce our role in contributing to the country’s economy,“ Tan said.
Pantech Global’s listing marks the first Main Market IPO in 2025.
The IPO is expected to raise about RM178.32 million through the public issue of 262.23 million new ordinary shares at 68 sen per share.
A retail tranche of 21,250,000 IPO shares is made available for application by the Malaysian public.
Applications close on Feb 19, ahead of balloting on Feb 24. PGB’s listing is targeted for March 3.
Of the expected proceeds, the company will utilise RM67.32 million (37.75%) for business expansion, RM64.68 million (36.27%) for capital expenditure, RM22.72 million (12.74%) as working capital, RM15 million (8.41%) for repayment of bank borrowings and RM8.6 million (4.83%) for listing expenses.
The utilisation of the proceeds is part of the company’s three-pronged strategy for sustainable growth.
PGB’s business expansion entails setting up a factory and corporate head office in Selangor to broaden the range of fittings manufactured, a warehouse in Johor to improve order fulfilment and a pickling facility in Johor to accommodate longer pipes.
In addition, PGB is acquiring its rented factory in Klang, Selangor, and operational land in Johor .
The company also plans to purchase, upgrade and replace machinery and equipment, as well as components, to enhance production capabilities and efficiency.
PGB operates in Malaysia, with its head office in Klang, and manufacturing facilities in Klang and Pasir Gudang, Johor.
The company mainly serves customers in the US, Malaysia, Taiwan, Indonesia, Canada and Europe, which collectively represented 93.80% and 92.01% of its total revenue for the financial year ended Feb 29, 2024, and the six-month financial period ending Aug 31, 2024 respectively.
