Kuala Lumpur: Pantech Global Bhd is not expected to be affected by US President Donald Trump’s plan to impose a 25 per cent tariff on all steel and aluminium imports. Its group managing director, Adrian Tan, stated that the proposed tariffs would be applied uniformly across all countries, creating a level playing field. “If every country is at 25 per cent, all things will be equal, and it will make no difference to us,” he mentioned during the group’s prospectus launch.
According to BERNAMA News Agency, Pantech Global manufactures and exports butt weld pipe fittings and stainless steel welded pipes designed for high temperatures, high pressure, and corrosive environments. These products serve industries like oil and gas, petrochemical, chemical, semiconductor, water treatment, and shipbuilding. Tan also highlighted that the specifics of the tariff plan are unclear and tend to target upstream producers, whereas Pantech Global operates in the downstream sector.
On Sunday, Trump announced his intention to impose tariffs on steel and aluminium imports and reciprocal tariffs on countries imposing duties on US goods. Meanwhile, Pantech Global plans to raise approximately RM178.32 million through its initial public offering (IPO) before listing on the Main Market of Bursa Malaysia on March 3, marking the first IPO on the Main Market in 2025.
The IPO involves issuing 262.23 million new shares at 68 sen per share. With an enlarged issued share capital of 850 million shares, Pantech Global will have a market capitalisation of RM578.00 million upon listing. A retail tranche of 21.25 million shares is available for Malaysian public application, offering investors a 30.85 per cent stake in the company, with the rest held by Pantech Group Holdings Bhd.
Pantech Global intends to allocate 37.75 per cent or RM67.32 million of the proceeds for business expansion and 36.27 per cent (RM64.68 million) for capital expenditure, including establishing a new factory to expand its fittings production and building a corporate head office in Selangor. Additionally, a new warehouse will be set up in Johor to enhance fulfilment, and a new pickling facility will be established for longer pipes.
Tan mentioned plans to acquire the rented factory in Klang and operational land in Johor as part of the listing chain. “We also plan to purchase, upgrade and replace machinery and equipment, as well as components to enhance production capabilities and efficiency, including new automated machines,” he added. The remaining proceeds will be used for working capital (12.74 per cent or RM22.72 million), repaying bank borrowings (8.41 per cent or RM15 million), and covering listing expenses (4.83 per cent or RM8.6 million).
Pantech Global primarily serves customers in the US, Malaysia, Taiwan, Indonesia, Canada, and Europe, accounting for 93.80 per cent and 92.01 per cent of its total revenue for the financial year ended February 29, 2024, and the first six months ended August 31, 2024, respectively. In 2023, the company held 66 per cent of Malaysia’s export market share for butt weld pipe fittings and 16 per cent of the production market share for stainless steel welded pipes. Alliance Islamic Bank Bhd is the principal adviser, underwriter, and placement agent for the IPO exercise.