Family-run Pan Merchant begins accepting IPO applications at 27 sen per share
The Edge Malaysia - 6 June 2025 View original article
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KUALA LUMPUR (June 6): Pan Merchant Bhd, which manufactures industrial filters, has started accepting applications from investors for its initial public offering (IPO) to raise up to RM67.55 million for its ACE Market listing.
The IPO is priced at 27 sen a piece, according to its prospectus unveiled on Friday. The company is family-run with the co-founders being brothers and their relatives serving in senior management roles.
Application for the IPO will close on June 17, with the company scheduled for listing on June 26.
Pan Merchant is mainly involved in the design, manufacture, assembly and commissioning of filters for solid liquid filtration and the provision of steel works as well as technical support services.
The company exports more than 80% of its products manufactured at its three facilities in Ipoh, Perak to Asia, Europe, the Americas and Africa, and operates offices in Malaysia, Singapore, the Netherlands and the US.
Pan Merchant serves a range of end-user industries such as edible oil refining, food processing, sustainable fuel production and water treatment.
"We aim to stay ahead in our industry, placing strong emphasis on research and development, sharpening the performance of our products, experimenting with new materials and technologies, and staying agile in addressing the evolving demands of our international clientele," said Managing Director Wong Voon Ten.
The IPO will raise about RM62.69 million for Pan Merchant and another RM4.86 million for the sole selling shareholders Budhi Sentoso Rachmat, a co-founder of Pan Merchant’s subsidiary PMI-Technology Sdn Bhd.
Pan Merchant has allocated 45% of the IPO proceeds for capital expenditure on manufacturing plants, including the acquisition of machinery, equipment, tools and manufacturing plant renovations.
The company has also set aside 11% for product development, close to 10% for business expansion in the Netherlands, 23% for working capital, and remaining 11% to defray listing expenses.
At the IPO price of 27 sen, Pan Merchant is expected to have a market capitalisation of RM247 million upon listing, valuing the company at 32 times its trailing earnings. Pan Merchant made a net profit of RM7.68 million in 2024.
Wong and his siblings Wong Nyeon Thiat, Wong Voon Yoong and Wong Voon Shek run the company as Executive Directors. His brother-in-law Lee Cheng Ngee is also an Executive Director at the company.
Wong's son-in-law Ko Siu Lun is Pan Merchant's Head of Global Operations while Lee Han Jun, the son of Lee Cheng Ngee and Wong Nyeon Thiat, is the Head of Innovation and Technology.
Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.
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