KUALA LUMPUR: Solid-liquid filtration solutions provider Pan Merchant Bhd seeks to raise RM67.6 million from its initial public offering (IPO) for its listing on the ACE Market of Bursa Malaysia for international expansion.
Of the total proceeds, the company will allocate RM62.7 million for capital expansion, of which RM28 million will be used to expand its manufacturing plants, including the acquisition of machinery, equipment and tools, as well as renovations to its manufacturing facilities.
A further RM7 million will be allocated for product development and the remaining RM27.7 million for business expansion, general working capital and defraying listing expenses.
The goal of the IPO is to grow the group’s global market share to 2%-3% through further global expansion, particularly in Europe and America.
Managing director Wong Voon Ten said the company aims to stay ahead in the industry by emphasising research and development, sharpening the performance of products, experimenting with new materials and technology, and staying agile in addressing the evolving demands of international clientele.
“In tandem with this, we are ramping up our manufacturing capabilities. From investing in the latest machinery and expanding automation to introducing new production lines, these improvements are designed to boost consistency, precision, and production scalability in line with our global growth ambitions,“ he said at the launch of the IPO prospectus today.
Wong said the US and European markets represent high potential opportunities for premium solid-liquid filtration systems. “We are confident our offerings are well-aligned with the expectations and standards of these discerning markets.”
The IPO involves a total of 250.2 million ordinary shares in Pan Merchant, which includes 232.2 million new shares and 18. million offer-for-sale shares. The total number of shares represents 27.3% of the enlarged share capital.
The group aims to distribute at least 30% of its annual audited net profit after tax to reward its shareholders.
Pan Merchant is scheduled to list on the ACE Market on June 26.
Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter for the group’s IPO.
