Pan Merchant To Raise RM67.6 Million Through IPO For International Expansion
KleverStock - 6 June 2025 View original article
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Kuala Lumpur, June 6 - Pan Merchant Berhad is set to raise RM67.6 million from its initial public offering (IPO) on the ACE Market of Bursa Malaysia, with the proceeds earmarked for international expansion and capital investments. The IPO, which opens for subscription on June 6 and closes on June 17, 2025, marks a significant milestone in the company’s strategy to scale its global presence—particularly in Europe and America—with the aim of increasing its global market share from 0.5% to between 2.0% and 3.0%.
Of the RM67.6 million targeted, RM62.7 million will be allocated to Pan Merchant, while RM4.9 million will go to the offeror. The company plans to invest RM28.0 million in capital expenditure for its manufacturing plants, covering the purchase of machinery, equipment, tools, and facility upgrades. An additional RM7.0 million will be directed towards product development, while the remaining RM27.7 million will support business expansion, working capital, and listing-related expenses.
The IPO consists of 250.2 million ordinary shares, including 232.2 million new shares and 18.0 million existing shares offered for sale. This represents 27.3% of the company’s enlarged share capital. Of the new shares, 114.5 million will be allocated to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI), and 57.3 million will go to selected investors via private placement. Another 45.8 million new shares will be offered to the Malaysian public via balloting, while 14.6 million shares will be made available to eligible directors, employees, and other contributors to the Group’s success. The 18.0 million offer-for-sale shares will be placed out to selected investors.
Managing Director Wong Voon Ten emphasized that the IPO signals the start of a new growth phase, underpinned by the company’s commitment to international expansion and innovation. In line with its confidence in future prospects, Pan Merchant has introduced a dividend policy to distribute at least 30% of its annual audited net profit after tax to shareholders.
The company, known as a leading provider of solid-liquid filtration solutions in Malaysia, is expected to debut on Bursa Malaysia on June 26, 2025, subject to market conditions. Affin Hwang Investment Bank is the sole principal adviser, sponsor, underwriter, and placement agent for the IPO.
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