PETALING JAYA: Pioneer Heat Holdings Bhd, a mechanical engineering services provider with core expertise in piping system engineering and related specialised services, has entered into an underwriting agreement with Malacca Securities Sdn Bhd in preparation for its initial public offering (IPO) in conjunction with its listing the ACE Market of Bursa Malaysia Securities.
With operating roots dating back to 1997, Pioneer Heat has built a track record in supporting new plant construction, maintenance, scheduled turnarounds, modifications and refurbishment works for oil and gas refineries, petrochemical complexes, utility plants and manufacturing facilities.
According to the exposure draft prospectus published on Bursa Securities’ website, Pioneer Heat’s IPO comprises a public issue of 86.7 million new ordinary shares and an offer for sale of 17.345 million existing ordinary shares.
The allocation of the IPO shares is structured as follows: 17.345 million new shares, representing about 5% of the group’s enlarged issued share capital, will be made available for application by the Malaysian public; 10.407 million new shares, representing about 3% of the group’s enlarged issued share capital, for eligible directors and employees, as well as persons who have contributed to the success of Pioneer Heat and its subsidiaries and 58.948 million new shares, representing about 17% of the group’s enlarged issued share capital, by way of private placement to selected investors.
Another 17.345 million existing shares, representing some 5% of the group’s enlarged issued share capital, will be offered by way of private placement to selected investors.
Malacca Securities will underwrite 27.75 million issue shares, comprising the shares made available for application by the Malaysian public and eligible persons. The remaining 76.293 million IPO shares, comprising 58.948 million new shares and 17.345 million offer shares, will be placed out to selected investors by way of private placement.
CEO and executive director Wong Wei Ken said, “The signing of this underwriting agreement marks an important milestone for Pioneer Heat as we move closer to our listing on the ACE Market. 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. This listing exercise will allow us to strengthen our operational base, expand our regional presence and enhance our capacity to serve customers across key industrial sectors.”
Proceeds from the public issue are intended to be utilised for the establishment of the new Sendayan headquarters and the new Sarawak office, purchase of machinery and equipment, working capital and listing expenses.
