KUALA LUMPUR: Pioneer Heat Holdings Bhd has struck an underwriting agreement with Malacca Securities Bhd in conjunction with its initial public offering (IPO) on the ACE Market of Bursa Malaysia.
According to the exposure draft prospectus, the provider of mechanical engineering services is undertaking a public issue of 86.7 million new shares and an offer for sale of 17.35 million existing shares.
Under the public issue, the company will undertake a private placement of 58.95 million new shares to selected investors.
Pioneer Heat will also make available 17.35 million new shares to the Malaysian public, and 10.41 million new shares to eligible directors and employees, as well as persons who have contributed to the success of Pioneer Heat and its subsidiaries.
Malacca Securities will undertake to underwrite the 27.75 million shares made available to the Malaysian public and eligible persons.
"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," said Pioneer Heat CEO and executive director Wong Wei Ken in a statement.
Pioneer Heat intends to utilise the proceeds from the public issue for the establishment of the New Sendayan HQ and the New Sarawak Office, the purchase of machinery and equipment, working capital and estimated listing expenses.
The exposure draft prospectus outlines that the New Sendayan HQ is expected to comprise an administrative office, warehouse and workshop to service customers in the Central region, with planned capabilities including fabrication works for pipe spools and pipe structures, hydrotesting works, heat treatment services and valve servicing.
Meanwhile, the New Sarawak Office is intended to support the Group’s expansion in East Malaysia by providing additional space for fabrication activities, storage of materials, machinery, equipment, tools and consumables, as well as the continued development of its service offerings in the region.
