Pan Merchant inks underwriting agreement for ACE Market listing
From left: Pan Merchant Bhd executive director Wong Voon Yoong, Pan Merchant managing director Wong Voon Ten, Affin Hwang Investment Bank Bhd managing director of capital markets Johan Hashim and Affin Hwang head of equity capital markets Arvin Chia.
KUALA LUMPUR: Pan Merchant Bhd has signed an underwriting agreement with Affin Hwang Investment Bank Bhd as part of its initial public offering (IPO) exercise on the ACE Market of Bursa Malaysia Securities Bhd.
In a statement, the solid-liquid filtration solutions provider said its IPO involves 250.2 million ordinary shares in Pan Merchant — 232.2 million new shares and 18.0 million offer-for-sale shares — representing 27.3% of the enlarged share capital.
Of the new shares, 114.5 million will be privately placed to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI), while 57.3 million will be allocated to selected investors through private placement.
Additionally, 45.8 million new shares will be offered to the Malaysian public through balloting, while 14.6 million shares will be allocated for application by eligible directors, employees, and contributors to the group's success.
The 18.0 million offer-for-sale shares will be offered to selected investors through private placement.
Pan Merchant managing director Wong Voon Ten said the company is eager to tap into opportunities in the capital market to drive its next phase of growth as it embarks on its IPO and listing journey.
'As we embark on this IPO, we are eager to tap into the opportunities the capital market offers to drive our next phase of growth with our listing status.
'We strongly believe that being listed on Bursa Malaysia will position us with enhanced credibility among customers worldwide for our long-term success and expansion into new regions and industries,' Wong said.
Meanwhile, Affin Hwang chief executive officer Nurjesmi Mohd Nashir said: 'Upon listing, Pan Merchant will be the only solid-liquid filtration solutions provider listed on Bursa Malaysia, marking a unique issuer on Bursa Malaysia and reinforcing its position as the largest homegrown solid liquid filtration solution industry player in Malaysia in terms of its revenues.'
'With the group's strong fundamentals, growth prospects, industry experience and niche expertise, we are optimistic that Pan Merchant will garner strong investor interest.'
The proceeds from the IPO will mainly be used for capital spending, including buying new machines, equipment, and tools, and upgrading the group's manufacturing plants to boost capacity and efficiency.
A portion of the funds will also be allocated for product development, business expansion, working capital and estimated listing expenses.
Pan Merchant is expected to be listed on the ACE Market of Bursa Malaysia in the second quarter of 2025.
Affin Hwang is the principal adviser, sponsor, sole placement agent, and sole underwriter for the group's IPO exercise.
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