Pioneer Heat debuts 2pct higher, climbs as much as 26pct

KUALA LUMPUR: Pioneer Heat Holdings Bhd made a warm start on the ACE Market today, opening at 25.5 sen, half a sen or two per cent above its initial public offering (IPO) price of 25 sen.

Buying picked up after the opening bell, lifting the stock as high as 31.5 sen, up 6.5 sen or 26 per cent. At 9.17am, Pioneering Heat was trading at 31 sen, up six sen or 24 per cent.

It was the most actively traded counter on Bursa Malaysia, with 38.32 million shares changing hands.

The hot start came after the engineering firm's IPO drew strong investor demand, with the public portion oversubscribed by 47.80 times.

Pioneer Heat's IPO comprised 86.70 million new shares and an offer for sale of 17.35 million existing shares.

The company raised RM21.68 million from the public issue, with RM7.90 million earmarked for working capital and RM4.01 million for machinery and equipment.

Another RM4 million will fund a new headquarters in Sendayan, Negri Sembilan, while RM2.07 million will go towards setting up an office in Sarawak. The remaining RM3.70 million is for listing expenses.

The listing valued Pioneer Heat at about RM86.73 million, based on its enlarged share capital of 346.90 million shares.

Pioneer Heat provides mechanical engineering services, including piping system engineering, heat treatment, flange management and non-destructive testing, mainly for the oil and gas, petrochemical, utility and manufacturing industries.