Pioneer Heat Holdings Bhd has signed an underwriting agreement with Malacca Securities Sdn. Bhd. as part of its planned initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad, marking a significant step toward its public listing.
The mechanical engineering services provider, which specializes in piping system engineering, heat treatment, flange management, and non-destructive testing (NDT) services, intends to use the IPO proceeds to support its operational expansion, including the establishment of new facilities in Negeri Sembilan and Sarawak.
According to the exposure draft prospectus published on Bursa Securities' website, the IPO comprises a public issue of 86.70 million new ordinary shares and an offer for sale of 17.345 million existing shares.
Under the underwriting agreement, Malacca Securities will underwrite 27.75 million new shares allocated to the Malaysian public and eligible directors, employees, and contributors. The remaining 58.948 million new shares, along with the entire 17.345 million offer-for-sale shares, will be offered to selected investors through a private placement.
"The signing of this underwriting agreement marks an important milestone for Pioneer Heat as we move closer to our listing on the ACE Market," said Wong Wei Ken, Chief Executive Officer and Executive Director of Pioneer Heat. "Over the years, we have built our capabilities around specialised mechanical engineering services that support the full lifecycle of industrial plants, from new plant construction to maintenance, turnarounds, modifications and refurbishment works."
Wong added that the listing would strengthen the company's operational base, expand its regional footprint, and increase its capacity to serve customers across key industrial sectors.
Malacca Securities also highlighted the company's technical expertise and growth strategy.
"Pioneer Heat has established itself as a specialised mechanical engineering services provider with experience across piping system engineering, heat treatment, flange management and NDT services," said Lim Chia Wei, Managing Director of Malacca Securities. "Backed by its operating track record, technical capabilities and expansion plans, the Group is well-positioned to strengthen its market presence and pursue its next phase of growth."
The IPO is structured to broaden Pioneer Heat's shareholder base while providing liquidity for existing shareholders. Of the enlarged share capital, 17.345 million shares, representing 5.0%, are allocated to the Malaysian public, while 10.407 million shares, or 3.0%, are reserved for eligible directors, employees, and contributors. Another 58.948 million new shares, representing 17.0%, will be placed with selected investors through private placement, alongside the offer for sale of 17.345 million existing shares, equivalent to 5.0% of the enlarged share capital.
The company plans to use the IPO proceeds to establish its New Sendayan Headquarters, which will include an administrative office, warehouse, and workshop serving customers in Malaysia's Central region. The facility is expected to support fabrication of pipe spools and pipe structures, hydrotesting, heat treatment services, and valve servicing.
Pioneer Heat also intends to establish a new office in Sarawak to expand its presence in East Malaysia. The facility will provide additional space for fabrication activities, storage of materials, machinery, equipment, tools, and consumables, while supporting the expansion of the company's service offerings in the region.
Additional proceeds from the IPO will be allocated toward the acquisition of machinery and equipment, working capital requirements, and listing-related expenses.
Founded in 1997, Pioneer Heat has nearly three decades of experience providing mechanical engineering services for industrial plants across the oil and gas, petrochemical, utility, and manufacturing sectors. Its service portfolio spans new plant construction, maintenance, scheduled turnarounds, modifications, refurbishment works, and NDT services that support asset integrity throughout the industrial plant lifecycle.
The proposed ACE Market listing is expected to support the company's expansion plans as demand for maintenance, turnaround, and industrial engineering services continues across Malaysia's oil and gas and petrochemical industries.
Reference: https://finance.biggo.com/news/9ba67de2-4eda-493e-a69e-3cff2e1cb21d
