KUALA LUMPUR: One Gasmaster Holdings Bhd made its debut on the ACE Market of Bursa Malaysia Securities today, raising RM19.38 million to fund service expansion, new branches and calibration facilities as demand for environmental compliance and emissions monitoring gains momentum.
The environmental monitoring and gas solutions provider opened at 23.5 sen per share, 1.5 sen or 6% below its initial public offering (IPO) price of 25 sen, with 1.86 million shares traded at the opening bell.
The counter ended its debut at 20 sen, or 20% below the IPO price, on trading volume of 46.16 million shares.
Managing director and CEO Ivan Tan said the listing marks a significant milestone for the group, strengthening its credibility and positioning it for long-term growth despite near-term market volatility.
“Market conditions can be volatile in the short term, but day-to-day fluctuations do not affect the underlying fundamental value of the business,” he told reporters after the listing ceremony.
“We remain confident in our fundamentals and long-term prospects, and the management team is focused on executing our growth strategy and building sustainable value for shareholders.”
From the IPO proceeds, 19.41% will be used to expand the group’s service offerings to include emission control solutions, while 8.66% will fund the establishment of an additional calibration laboratory at its office in Damansara. A further 25.22% will be used to set up new branch offices and calibration laboratories in Johor, Terengganu and Penang, with 26.06% earmarked for working capital and the remaining 20.65% for listing expenses.
Tan said the expansion will be rolled out in phases over 24 months, adding that the selected locations are key industrial hubs that will allow the group to improve response times and customer engagement beyond the Klang Valley.
“These regions are important industrial centres. Expanding our presence there brings us closer to customers and strengthens our nationwide footprint.”
Addressing questions on earnings visibility, Tan said, while the group does not maintain a formal order book, its maintenance and calibration segment, which contributes more than a third of revenue, is supported by recurring, interval-based service contracts.
“Maintenance contracts are typically issued based on scheduled intervals. Internally, we track these orders closely and engage with customers ahead of each cycle,” he said.
The group’s performance for the first nine months of its financial year was affected by global headwinds and higher expenses, resulting in lower profits year-on-year. However, Tan said business conditions have begun to improve as customers resume project discussions.
“Geopolitical uncertainties did affect us, but we are now seeing a shift. Clients have started talking to us again and resuming their plans,” he said, adding that this is expected to support a recovery in the coming quarters.
Tan also highlighted growing opportunities arising from environmental, social and governance regulations, including the anticipated rollout of a carbon tax framework in Malaysia.
“Carbon tax is based on carbon emission output, which requires accurate measurement. That’s where our gas analysis and monitoring solutions come in, measuring emissions so industries can quantify and manage them,” he said.
He noted that while policy details have yet to be finalised, initial focus on heavy industries such as steel could create demand for the group’s services, with potential spillover into other sectors over time.
“The measurement component is very positive for our business. Reducing emission volume starts with measuring it accurately,” he remarked.
On foreign exchange movements, Tan said the strengthening ringgit is expected to benefit the group, as a significant portion of its equipment is imported. “A stronger ringgit lowers our procurement costs, which helps improve margins.”
Tan said the company does not currently have a formal dividend policy, as it remains focused on growth and capital expenditure requirements. “Our dividend decisions will depend on company performance and expansion needs. At this stage, our priority is growing the business.”
One Gasmaster, founded in 1998, provides environmental monitoring, gas detection and gas piping services, industrial hygiene services, maintenance and calibration services, as well as trading of related instruments and components. The group serves clients across industrial and commercial sectors.
