Pan Merchant forges ahead with ACE Market debut despite cautious IPO uptake

New Straits Times - 23 June 2025 View original article

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KUALA LUMPUR: Solid-liquid filtration solutions provider Pan Merchant Bhd is pushing ahead with its ACE Market listing on Bursa Malaysia this Thursday, undeterred by a cautious market environment and a less-than-robust response from retail investors.

Despite receiving only 1,107 applications for 16.9 million shares, just over a third of the 45.8 million shares allocated to the public, the unsubscribed shares will be fully underwritten by Affin Hwang Investment Bank Bhd, the group said in a statement today.

In contrast, the placement portion of the initial public offering (IPO) has been fully taken up, with 57.3 million shares allocated to selected investors and 114.5 million shares earmarked for Bumiputera investors approved by the Investment, Trade and Industry Ministry, following clawback and reallocation provisions.

Pan Merchant managing director Wong Voon Ten said market sentiment had been dampened by global uncertainties.

"It is unfortunate that our IPO journey coincided with a period of heightened market uncertainty due to geopolitical tensions, which led to softer interest as investors adopted a more cautious stance," he said.

"That said, we remain optimistic about our outlook and are confident in our long-term growth prospects. We have been in operation for about 38 years navigating ups and downs in the economy.

"Despite the challenging equity market conditions, we are fully committed to executing our strategy to elevate the company to new heights," he added.

Wong added that the group believes investors will come to appreciate its value proposition over time, as it executes its growth plans and deliver solid financial performance.

Pan Merchant, which specialises in industrial filter presses and hermetic filters, said it intends to adopt a dividend policy of distributing at least 30 per cent of its annual audited profit after tax to shareholders.

Established in 1987, the company is Malaysia's largest player in its niche by revenue and exports over 80 per cent of its products to international markets including Asia, Europe, the Americas and Africa.

With manufacturing facilities in Ipoh, Perak and offices across Malaysia, Singapore, the Netherlands and the United States, Pan Merchant said it is positioning itself for further global expansion.

Its products serve various industries including edible oil refining, sustainable fuel production, food processing, potable water and wastewater treatment.

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