Pan Merchant aims to raise RM67.6m from IPO for international expansion

KUALA LUMPUR: Solid-liquid filtration solutions provider Pan Merchant Bhd seeks to raise RM67.6 million from its initial public offering (IPO) for its listing on the ACE Market of Bursa Malaysia for international expansion.
Of the total proceeds, the company will allocate RM62.7 million for capital expansion, of which RM28 million will be used to expand its manufacturing plants, including the acquisition of machinery, equipment and tools, as well as renovations to its manufacturing facilities.
A further RM7 million will be allocated for product development and the remaining RM27.7 million for business expansion, general working capital and defraying listing expenses.
The goal of the IPO is to grow the group's global market share to 2%-3% through further global expansion, particularly in Europe and America.
Managing director Wong Voon Ten said the company aims to stay ahead in the industry by emphasising research and development, sharpening the performance of products, experimenting with new materials and technology, and staying agile in addressing the evolving demands of international clientele.
'In tandem with this, we are ramping up our manufacturing capabilities. From investing in the latest machinery and expanding automation to introducing new production lines, these improvements are designed to boost consistency, precision, and production scalability in line with our global growth ambitions,' he said at the launch of the IPO prospectus today.
Wong said the US and European markets represent high potential opportunities for premium solid-liquid filtration systems. 'We are confident our offerings are well-aligned with the expectations and standards of these discerning markets.'
The IPO involves a total of 250.2 million ordinary shares in Pan Merchant, which includes 232.2 million new shares and 18. million offer-for-sale shares. The total number of shares represents 27.3% of the enlarged share capital.
The group aims to distribute at least 30% of its annual audited net profit after tax to reward its shareholders.
Pan Merchant is scheduled to list on the ACE Market on June 26.
Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter for the group's IPO.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

The Star

15 hours ago

• The Star

Growing achievements from the ground up

Wong: 'We saw an opportunity to contribute to more efficient and sustainable farming practices beyond Malaysia.' SK Specialties Sdn Bhd is Malaysia's first producer of controlled release fertiliser (CRF), a cutting-edge enhanced efficiency fertiliser (EEF) designed to support sustainable agriculture. Since beginning production in August 2009, its flagship product, SK Cote, has set new standards in nutrient delivery and environmental stewardship. Its commitment to quality and innovation has earned the company national recognition. According to SK Specialties managing director Adrian Wong Ling Yung, the company was granted Malaysia's Pioneer Status in 2012, certified with ISO 9001:2015 in 2017, and implemented the 5S workplace system in 2019 to enhance productivity and organisation. 'While EEFs are traditionally reserved for high-value crops due to cost, our mission is to make high-quality CRF more accessible and affordable worldwide. 'We were driven by the belief that feeding the world efficiently and sustainably is not just a goal – it's a responsibility.' Wong said the company began exporting in 2011, marking a milestone in becoming a globally competitive company. Moving into overseas markets was driven by its commitment to deliver high-quality, sustainable fertiliser solutions to a broader audience. 'We recognised a growing global demand for environmentally responsible agricultural products, and with our innovative SK Cote controlled release fertiliser, we saw an opportunity to contribute to more efficient and sustainable farming practices beyond Malaysia.' Exporting also aligned with its vision of supporting global food security while strengthening its position as a pioneer in the industry. Early in its export journey, the company encountered significant challenges that tested its resilience and adaptability. Wong said gaining market acceptance for its product was one such hurdle. 'As a new player introducing CRF, a relatively advanced and unfamiliar technology in many regions, we faced scepticism from potential customers who were accustomed to conventional fertilisers,' he said. Convincing them of the long-term benefits, cost-effectiveness and environmental advantages required substantial effort, including demonstrations, field trials and building strong, trust-based relationships with local partners. Another major challenge was the lack of in-depth knowledge about different markets. Each country had its own set of regulatory frameworks, agricultural practices, climatic conditions and customer expectations. Navigating these differences demanded extensive market research, adaptability and collaboration with local experts. It had to learn quickly, adjust marketing strategies and even fine-tune its formulations to meet specific regional needs. Despite these obstacles, the company remained committed, as its team invested time and resources into education and awareness campaigns, conducted extensive product trials and actively participated in trade exhibitions to showcase its solutions. 'Through our persistence, continuous learning and a customer-centric approach, we built credibility and established a growing presence in overseas markets,' Wong added. These early challenges strengthened its foundation and shaped the way it operates globally today – agile, informed and focused on delivering quality and value across borders. The company's international growth has been driven by a combination of key factors that continue to set it apart in a competitive global market. Its commitment to product quality that ensures consistent performance and environmental safety has helped build trust with customers around the world and positioned it as a reliable partner. The product offers significant cost advantages that make it accessible to a wider range of customers and its flexibility in customisation to meet local requirements. Also the company's willingness to collaborate with local partners played a vital role in its success as working closely with distributors, agronomists and government agencies allow it to adapt its approach, provide localised support and gain deeper insights into market dynamics. 'Winning the Silver Award in the Industrial Products category for two years in a row is a powerful validation of our commitment, resilience and collective effort,' said Wong. 'It acknowledges the strides we have made to produce high-quality, innovative products and highlights our ability to remain competitive and sustainable in the international export market. 'Looking ahead, we are exploring opportunities to expand into new and emerging markets, particularly in regions where sustainable agriculture is becoming a national priority. 'South Asia, Africa and parts of Latin America are high on our radar due to their large agricultural sectors, increasing focus on food security and growing demand for efficient fertiliser solutions,' he explained. The company looks to expand into markets where the need for sustainable, high-performance fertilisers intersects with its ability to deliver real, long-term value. For more, visit

New Straits Times

16 hours ago

• New Straits Times

Palm oil muted but poised for sixth weekly gain

KUALA LUMPUR: Malaysian palm oil futures were muted on Friday as traders awaited cargo surveyors' export estimates, but the contract was still set for a sixth consecutive weekly gain as stronger rival edible oils supported the market. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained RM7, or 0.17 per cent, to RM4,111 (US$967.52) a metric tonne in early trade. The contract has gained 5.50 per cent so far this week. Dalian's most-active soyoil contract rose 0.62 per cent, while its palm oil contract added 0.28 per cent. Soyoil prices on the Chicago Board of Trade were up 0.09 per cent. Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Cargo surveyors are expected to release Malaysian palm oil export estimates for June 1–20 later in the day. Oil prices were on track to rise for the third straight week despite slipping on Friday, with investors on edge as the week-old war between Israel and Iran showed no signs of either side backing down. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. The ringgit, palm's currency of trade, strengthened 0.21 per cent against the dollar, making the commodity more expensive for buyers holding foreign currencies. Palm oil may test the resistance zone of RM4,157 to RM4,185 per metric tonne, a break above which could lead to a gain to RM4,229, Reuters technical analyst Wang Tao said.

The Star

20 hours ago

• The Star

Nationwide clampdown begins on illegal tourism players

PETALING JAYA: Enforcement against illegal tourism businesses is being ramped up ahead of Visit Malaysia 2026 to ensure they all operate within the law. Inspections are being conducted, both proactively and based on public complaints, in line with the Tourism Industry Act 1992 and the Tourism Vehicles Licensing Act 1999. 'When violations are identified, formal inspection notices are issued in accordance with existing procedures,' the Tourism, Arts and Culture Ministry said in a statement. The action comes after a court in Penang convicted Renewage Group Sdn Bhd for operating without a valid tourism licence on June 16. The company was fined RM30,000. The ministry said nationwide integrated operations were being carried out with other enforcement and regulatory agencies to safeguard visitors and uphold industry standards. Five travel agencies have had their licences revoked between 2024 and 2025 for regulation breaches. These unlicensed operators pose a serious threat to the industry by undercutting legitimate businesses, said Malaysian Association of Tour and Travel Agents president Nigel Wong. 'These illegal players don't need offices, don't pay for licences or insurance, and can therefore offer cheaper rates. But this leaves consumers exposed to fraud and without legal protection if things go wrong, such as trip cancellations or accidents,' he said. Wong urged tourism stakeholders to work only with licensed guides, travel agencies and transport providers and not fall prey to cheats on social media. 'Social media is now a key channel for unlicensed players. We're seeing issues in places like Langkawi and other entry points, where unauthorised individuals and even foreigners are acting as tour guides,' he said, adding that there is a need for more enforcement. Malaysian Inbound Tourism Association president Mint Leong echoed the call for stronger action, noting that unlicensed operators can also damage Malaysia's image. 'Illegal tourism businesses pose real risks to safety and credibility,' she said. Leong said the booming demand for travel both inbound and outbound has fuelled misuse. 'Anyone can upload beautiful pictures on social media and attract customers. But many of these 'too good to be true' offers are traps,' she said. 'When an operator is caught, it should be made public. Let people see that enforcement is happening – it sends a message and helps prevent more victims.' Malaysian Women Tourist Guide Association president Erina Loo, meanwhile, urged both local and foreign visitors to verify tour operators through official channels. 'All licensed agencies, guides, homestay providers and operators are listed on the ministry's official website,' she said. For foreign visitors, Loo advised contacting Tourism Malaysia's overseas offices or Malaysian embassies. She also cautioned independent travellers to do their homework before hiring guides, adding that there were legal limits for licensed tour guides too. 'A licensed guide may lead a tour but cannot sell or advertise tour packages,' she said.