KUALA LUMPUR: It was a disappointing start for pipe manufacturer Pantech Global Bhd, which fell 32% on its maiden trading day on the Main Market of Bursa Malaysia yesterday as investors were jittery over the impact of US import tariffs on steel.
Shares of Pantech Global opened at 46.5 sen versus its initial public offering (IPO) price of 68 sen. The counter dipped as low as 40 sen, before recovering slightly.
Nevertheless, Pantech group managing director Adrian Tan remained optimistic on the group’s profitability moving forward.
“We are here to list our company so that we can have the funds to grow the company. If you look fundamentally, we are okay and we have all the orders that are in hand.
“We will continue to be profitable and we will do what we know is best – that is to earn money for the group,” he said during a press conference after Pantech’s debut on the market yesterday.
Pantech is involved in the manufacturing of butt weld pipe fitting and stainless steel welded pipes catered mostly for the oil and gas industry.
Tan said it will continue to prove to the public its resiliency amid the recent tariff imposed by US president Donald Trump on steel materials.
“America has come up with a lot of new policies which everyone has to learn to comprehend with, and we will just follow accordingly because our business is export.
“From last week, we are still receiving orders from our US clients. We have not written them off yet,” he said.
Moving forward, Pantech foresees growth potential in new markets, namely South America and North Africa. It is currently exporting to Ecuador, Peru and Colombia.
He added that the Middle East region would be its next focus market.
Tan explained that Pantech had initially encountered some issues with an exclusive agent there and had discontinued the partnership.
It has since appointed a new agent to market its products in the region.
Tan said Pantech is also looking to expand its market share in the European Union (EU).
The group has a market share of close to 20% in the EU and is exporting to about six to seven countries.
Pantech raised RM178.31mil via an issuance of 262.23 million shares from its IPO exercise.
The majority of its proceeds had been allocated for business expansion as well as capital expenditure at about RM132mil or 74% of the proceeds.
The remainder has been put aside for working capital, repayment of bank borrowings, and estimated listing expenses at RM22.72mil, RM15mil and RM8.6mil, respectively.
For the first half of its financial year ending Aug 31, 2025, Pantech posted a revenue of RM264.98mil and a gross profit of RM70.66mil, with the United States market being its major contributor.
Pantech fell 15.44% or 10.5 sen to close at 57.5 sen yesterday, with 86.06 million shares traded.
