KUALA LUMPUR (March 3): Pantech Global Bhd (KL:PGLOBAL) made a lacklustre debut on the local bourse on Monday, becoming the first new listing this year to close below its initial offering price (IPO) on the first trading day.

Pantech Global settled down 10.5 sen or 15.44% at 57.5 sen — from its IPO price of 68 sen — after the pipe manufacturing company raised RM178 million from its initial share sale on the Main Market of Bursa Malaysia.

The stock opened 32% lower at 46.5 sen on its first trade and sank to as low as 40 sen in the morning session. At its closing price of 57.5 sen, Pantech Global was valued at RM489 million.

It was the most active counter on Bursa Malaysia with 86.06 million shares traded.

With Pantech Global’s listing, Bursa Malaysia has seen nine IPOs so far this year.

“We remain committed to strengthening our capabilities, expanding our market reach, and driving sustainable value for our stakeholders,” Pantech Global group managing director Adrian Tan said in a speech during the company’s listing ceremony.

Demand during the IPO of Pantech Global, a spin-off of Pantech Group Holdings Bhd (KL:PANTECH), was strong ahead of the listing, with shares set aside for the public oversubscribed by nearly 45 times.

Pantech Global shrugged off the US tariffs of 25% on steel and aluminium imports announced shortly after the company launched the IPO, noting that the nature of the tariffs that come without any exemptions or exceptions would provide a level playing field.

The company commanded about two-thirds of Malaysia’s export market share for butt weld pipe fittings, and 16% of the country’s production market share for stainless steel welded pipes in 2023.

The company has earmarked 74% of the IPO's proceeds for expansion and capital expenditure, 13% for working capital, and 8% for loan repayment. The rest will be set aside to cover estimated listing expenses.

There was no sale of existing shares, meaning that the company’s main shareholders held on to their stakes.

Alliance Islamic Bank Bhd is the principal adviser, underwriter, and placement agent for the IPO.

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