Pan Merchant falls 15% on ACE Market debut after underwhelming IPO
The Edge Malaysia - 26 June 2025 View original article
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KUALA LUMPUR (June 26): Pan Merchant Bhd (KL:PMIBHD) fell on its ACE Market debut on Thursday, following underwhelming demand from investors at the industrial filter manufacturer’s primary share sale.
The stock opened at 23.5 sen compared to its initial price offering (IPO) price of 27 sen per share. It sank to as low as 22 sen before recovering a sen to close at 23, down four sen or 14.81% from its IPO price — making it the top loser of the day, by value and percentage, on Bursa Malaysia. Its last traded price gave the company a market capitalisation of RM219 million.
Ahead of the listing, Pan Merchant’s IPO saw weak demand, with its retail portion only 37% subscribed and the unsubscribed shares had to be reallocated to other categories of investors.
At least two research houses flagged that the IPO was overpriced due to Pan Merchant’s small size and market share, as well as global trade risks.
At the group’s listing ceremony on Thursday, Pan Merchant’s managing director Wong Voon Ten reiterated his confidence in the company, stressing significant potential and growing demand for solid liquid filtration solutions in the water treatment and sustainable fuel industries.
Order book stood at RM69.6 million as of May 6, comprising orders for filtration equipment, replacement parts, and steel works. The order book is expected to be fulfilled within the next 12 months.
The IPO raised about RM63 million for Pan Merchant and close to RM5 million for the sole selling shareholders Budhi Sentoso Rachmat, a co-founder of Pan Merchant’s subsidiary PMI-Technology Sdn Bhd.
Out of the total proceeds raised from new shares, RM28 million will be utilised for capital expenditure on manufacturing plants, including the acquisition of machinery, equipment, and tools, as well as renovation of its manufacturing facilities.
A further RM7 million will be allocated for product development, and the remaining for business expansion, working capital, and defraying of listing expenses.
Affin Hwang Investment Bank Bhd serves as the principal adviser, sponsor, sole placement agent, and sole underwriter for the group’s IPO exercise.
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