Pioneer Heat Holdings Bhd made a strong debut on Bursa’s ACE Market today, opening at 25.5 sen, 0.5 sen above its 25 sen IPO price before climbing to 27.5 sen in early trade.
The mechanical engineering services provider was trading at 27.5 sen as of 9:01am, up 2.5 sen or 10% from its 25 sen IPO price. The counter recorded an intraday high of 27.5 sen and a low of 25.5 sen, with 10,437,700 shares traded.
Pioneer Heat’s IPO had attracted strong investor demand, with its public offering oversubscribed 47.8 times after receiving 9,512 applications for 846.47 million shares.
The group raised RM21.68 million in gross proceeds from the public issue, which will be used to expand its operational capacity, purchase machinery and equipment, strengthen working capital and fund listing expenses.
Speaking to BusinessToday ahead of the listing, Chief Executive Officer and Executive Director Wong Wei Ken said the group was ready to scale up 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,” Wong said.
Working capital accounts for RM7.9 million or 36.4% of the IPO proceeds, supporting subcontractor services, materials, tools, consumables and performance bonds.
Wong said the additional liquidity would allow Pioneer Heat to participate in more tenders and undertake more 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.
The group also plans to expand its presence in Sarawak, where its subsidiaries have secured Petroleum Sarawak Bhd vendor registration to participate in quotation and tender opportunities within the state’s oil and gas sector.
“We are seeing opportunities in Sarawak’s oil and gas (O&G) and petrochemical industries, which align closely with the group’s capabilities in piping system engineering, heat treatment, flange management and non-destructive testing,” Wong said.
Pioneer Heat had an unbilled order book of RM50.43 million as at July 22, comprising RM38.15 million from mechanical engineering services and RM12.28 million from civil engineering projects.
The group also reported revenue of RM29.65 million and profit after tax of RM2.83 million for the first quarter ended June 30, 2026.
Wong said the group’s longer-term ambition was to build a broader domestic footprint and take on larger and more technically complex projects.
“Ultimately, we want Pioneer Heat to be recognised as a trusted and established mechanical engineering services provider,” he said.
