Kuala Lumpur: Solid-liquid filtration solutions provider Pan Merchant Bhd aims to raise RM67.6 million from its initial public offering (IPO) en route to a listing on the ACE Market of Bursa Malaysia. The company is scheduled for the listing on June 26, 2025, and will issue 232.2 million new shares, priced at 27 sen each.
According to BERNAMA News Agency, managing director Wong Voon Ten emphasized the company’s commitment to maintaining a competitive edge in the industry through strong focus on research and development, enhancing product performance, and experimenting with new materials and technologies. The group is also advancing its international expansion strategy, targeting the United States and European markets, which offer substantial opportunities for premium solid-liquid filtration systems.
Wong highlighted that Pan Merchant is enhancing its manufacturing capabilities by investing in the latest machinery and expanding automation processes. The company has allocated 40 percent of the RM67.6 million from the IPO proceeds for capital expenditure, primarily for acquiring machinery and enhancing production efficiency with robotics and automation in Computer Numerical Control (CNC) machining centers.
Out of the RM67.6 million IPO proceeds, RM62.7 million will benefit Pan Merchant, with the remaining RM4.9 million designated for the offerer. Of the RM62.7 million raised, RM28 million will be dedicated to capital expenditure for manufacturing plants, including acquiring machinery, equipment, tools, and renovations to its facilities. An additional RM7 million will support product development, while RM27.7 million will go towards business expansion, general working capital, and defraying listing expenses.
Established for 38 years, Pan Merchant is also diversifying its business into water, mineral processing, mining industries, and renewable energies from the hydrotreated vegetable oil industry. The company plans to distribute at least 30 percent of its net profit to shareholders as a reward.
Affin Hwang Investment Bank serves as the principal adviser, sponsor, sole placement agent, and sole underwriter for Pan Merchant’s IPO exercise.