Pan Merchant receives Bursa's nod for ACE Market IPO
The Edge Malaysia - 14 April 2025 View original article
_________________________
KUALA LUMPUR (April 14): Pan Merchant Bhd, Malaysia’s largest solid-liquid filtration company by revenue, has received approval to launch its initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The company, established in 1987, designs and manufactures filter presses and hermetic filters under the “PMI” brand. It also provides maintenance services and fabricates steel vessels.
“Over the past three decades, we have grown from a small company into a global player, competing on the international stage in the solid-liquid filtration solutions industry,” Pan Merchant managing director Wong Voon Ten said in a statement.
“Going public is a pivotal step that will empower us to expand our capabilities and better serve the evolving needs of the filtration industry and other end-user industries,” he added.
The company exports more than 80% of its products to Asia, Europe, the Americas and Africa, and operates offices in Malaysia, Singapore, the Netherlands and the US. Its three manufacturing facilities in Ipoh, Perak, span about 10 acres.
Pan Merchant said it serves a range of end-user industries such as edible oil refining, food processing, sustainable fuel production and water treatment. Its client base includes multinational engineering and plant design firms such as Desmet, Lipico, Alfa Laval and Oiltek.
Through the IPO, the group is seeking to raise capital to fund the expansion of its manufacturing facilities, product development, business growth and working capital needs.
According to its draft prospectus filed in December 2024, the proposed IPO entails a public issue of 232.19 million new shares — representing 25.35% of its enlarged issued share capital — and an offer for sale of 18 million existing shares at a price to be determined later.
Of the public issue, 45.8 million shares have been allocated to the Malaysian public, 14.6 million to eligible persons, 57.28 million to selected investors, and 114.5 million to Bumiputera investors via private placement.
The offer for sale of 18 million shares will be undertaken through a private placement to selected investors. Proceeds from this sale will go to selling shareholder Budhi Sentoso Rachmat, a co-founder of Pan Merchant’s subsidiary PMI-Technology Sdn Bhd. Post-listing, Budhi’s direct stake in the company will be reduced from 20% to 12.97%.
For the financial year ended Dec 31, 2023, Pan Merchant posted a net profit of RM10.62 million on revenue of RM138.49 million. Its gross profit margin stood at 32.03%, while profit before tax margin was 10.31%.
Subject to market conditions, Pan Merchant aims to be listed in the second quarter of 2025.
Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter for the IPO.
Read here.