Pan Merchant files draft prospectus for ACE Market listing
The Edge Malaysia - 26 December 2024 View original article
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KUALA LUMPUR (Dec 26): Pan Merchant Bhd, a manufacturer of filters for solid liquid filtration and a provider of steel works and technical support services, is looking to raise capital from a planned initial public offering (IPO) on the ACE Market of Bursa Malaysia to expand its manufacturing plants, product development, business expansion and for working capital.
The proposed IPO involves a public issue of 232.19 million new shares, which represents 25.35% of its enlarged issued shares, and an offer for sale of 18 million existing shares at a price to be determined later, according to the draft prospectus filed with Bursa Malaysia.
Under the proposed public issue, the company has set aside 45.8 million new shares for the public, 14.6 million shares for eligible persons, 57.28 million shares to selected investors, and 114.5 million shares through private placement to Bumiputera investors.
“We have a proven track record of 37 years in providing filtration solutions and have been able to establish our industry reputation under our 'PMI' trade name as the largest homegrown solid liquid filtration solution provider,” the prospectus said.
Pan Merchant has three manufacturing plants located in Ipoh, Perak, namely Jelapang Plant 1, Jelapang Plant 2 and Lahat Plant with a combined land area of approximately 428,274 sq ft.
Pan Merchant’s key end-user industries include edible oil, food processing, sustainable fuels, potable water and wastewater industries in Asia (Malaysia and Indonesia), America, Europe and Africa.
For its financial year ended Dec 31, 2023, the group made a net profit of RM10.62 million on revenue of RM138.49 million. Gross profit margin was 32.03% while profit before tax margin was 10.31%.
On its business expansion, the company said it plans to grow its presence internationally, particularly in Europe.
“We presently have three offices located in international markets, including our Netherlands office which serves the Europe region, our US office which serves the America region and Singapore office which serves the Asia region,” it noted.
Meanwhile, proceeds from the offer for sale through private placement to select investors will accrue entirely to the selling shareholder Budhi Sentoso Rachmat, who is the co-founder of its subsidiary PMI-Technology Sdn Bhd. Post-IPO, Budhi's direct stake will be diluted to a 12.97% stake in the company, from a 20% stake currently.
Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.
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