Pioneer Heat Holdings Bhd ended its maiden trading day on the ACE Market at 30 sen, a 20% premium to its 25 sen IPO price, after drawing strong investor interest throughout the session.
The mechanical and civil engineering services provider opened at 25.5 sen before climbing to 27.5 sen by 9.01am on 10.44 million shares. The counter strengthened further to 32.5 sen at midday, with 66.82 million shares traded, before settling at 30 sen at the close on turnover of 80.18 million shares.
The debut followed strong demand for Pioneer Heat’s IPO, which was oversubscribed by 47.8 times after receiving 9,512 applications for 846.47 million shares.
Pioneer Heat raised RM21.68 million in gross proceeds from the issuance of 86.7 million new shares.
Of the proceeds, RM7.9 million will go towards working capital, RM4.01 million for machinery and equipment, RM4 million for a new Sendayan headquarters and RM2.07 million for a new Sarawak office. Another RM3.7 million has been set aside for listing expenses.
Speaking to BusinessToday ahead of the listing, Chief Executive Officer and Executive Director Wong Wei Ken said the group was ready to move into its next phase of growth after building its technical capabilities and track record over 29 years.
“Having built our technical capabilities and track record over 29 years, we believe the group has reached a stage where we are ready to scale the business further,” he said.
Working capital represents 36.4% of the IPO proceeds and will support subcontractor services, materials, tools, consumables and performance bonds.
Wong said the added liquidity would allow the group to bid for more tenders and undertake a larger number of projects simultaneously.
“As our business grows, larger projects and a higher number of projects being executed concurrently will naturally require more working capital,” he said.
Pioneer Heat is also looking to deepen its presence in Sarawak, where its subsidiaries have secured Petroleum Sarawak Bhd vendor registration, opening the door to quotation and tender opportunities in the state’s oil and gas sector.
Wong said Sarawak’s oil and gas and petrochemical industries were closely aligned with Pioneer Heat’s capabilities in piping system engineering, heat treatment, flange management and non-destructive testing.
“We are seeing opportunities in Sarawak’s oil and gas and petrochemical industries, which align closely with the group’s capabilities,” he said.
As at July 22, Pioneer Heat had an unbilled order book of RM50.43 million, comprising RM38.15 million from mechanical engineering services and RM12.28 million from civil engineering projects.
For the first quarter ended June 30, 2026, the group recorded revenue of RM29.65 million and profit after tax of RM2.83 million.
Wong said Pioneer Heat’s longer-term ambition is to broaden its domestic footprint and take on larger, more technically complex projects.
“Ultimately, we want Pioneer Heat to be recognised as a trusted and established mechanical engineering services provider,” he said.
