PETALING JAYA: ACE Market newcomer Pan Merchant Bhd, a provider of solid-liquid filtration solutions, is prioritising emerging industries such as wastewater treatment and sustainable fuel to drive business growth and expand untapped markets.
Managing director Wong Voon Ten said the company sees rising demand for sustainable fuel solutions from major energy players, driven by the global push towards decarbonisation and cleaner energy sources.
“In Malaysia and across the Asia-Pacific region, we also see significant opportunities in water treatment projects, especially as governments and water service providers continue to increase capital expenditure to upgrade water infrastructure.
“On top of that, we are actively tendering for projects to sustain our earnings growth.
“Currently, our tender book has grown to a substantial level, with more than half derived from the potable water and wastewater treatment industry, while the remainder comprises projects from edible oil, sustainable fuel, and other industries,“ he said at the company’s listing ceremony on Bursa Malaysia in Kuala Lumpur today.
Wong said the company remains committed to its core strength in the edible oil industry.
“As a trusted and irreplaceable partner to our end-users, we are recognised for our consistent quality and reliability, and we will continue to play a vital role in supporting refineries and processing operations. We are also focused on expanding our presence in strategic regions where edible oil production is critical,“ he added.
Wong emphasised the significant potential and growing demand for solid-liquid filtration solutions in the water treatment and sustainable fuel industries, expressing confidence in the group’s ability to secure projects in such industries, backed by its 38-year track record of product quality and reliability.
As of April 30, the group’s potential project pipeline spans key industries, with the largest portion coming from the potable water and wastewater treatment segment, followed by projects in edible oil, sustainable fuel, mining, food processing, and other industrial segments.
Pan Merchant’s share price opened at 23.5 sen compared to the initial price offering (IPO) price of 27 sen per share. It closed at 23 sen, 4 sen or 14.8% below the IPO price, on 5.576 million shares traded.
The company’s IPO entailed a public issue of 232.2 million new shares and an 18 million offer-for-sale shares, at an issue price of 27 sen per share, representing 27.3% of the enlarged share capital. The overall value of the IPO is RM67.6 million, with Pan Merchant receiving RM62.7 million and the offeror receiving the remaining RM4.9 million.
Out of the total proceeds of RM62.7 million, RM28 million will be used for capital expenditure on manufacturing plants, including the acquisition of machinery, equipment, and tools, as well as the renovation of its manufacturing facilities. A further RM7 million will be allocated for product development, and the remaining RM27.7 million for business expansion, working capital, and defraying of listing expenses.
Pan Merchant plans to use part of its IPO proceeds to acquire advanced computer numerical control and robotic welding machines, which are expected to enhance production efficiency, to meet the growing demand for filtration equipment and replacement parts both locally and internationally.
As of May 6, the group’s order book stood at RM69.6 million, comprising orders for filtration equipment, replacement parts, and steel works. The order book is expected to be fulfilled within the next 12 months.
Affin Hwang Investment Bank Bhd serves as the principal adviser, sponsor, sole placement agent, and sole underwriter for Pan Merchant’s IPO exercise.
