KUALA LUMPUR (Aug 15): Newly-listed Pantech Global Bhd (KL:GLOBAL) has bought a parcel of industrial land in Klang, Selangor, for RM29 million in a bid to fast-track its expansion plans, while scrapping its earlier land acquisition earmarked under its initial public offering (IPO) exercise.
In a filing with Bursa Malaysia on Friday, the carbon steel pipe fittings manufacturer said the proposed acquisition will be undertaken by its wholly-owned subsidiary Pantech Steel Industries Sdn Bhd from Uptown Promenade Sdn Bhd, a unit of Rhong Khen International Bhd.
The freehold site measures approximately 4.84 acres and carries an industrial title.
Pantech Global added that the site, dubbed “Klang Factory 2”, will serve as its new corporate headquarters, production facility and warehouse by 2028. The expansion is aimed at broadening the range of carbon steel butt weld pipe fittings — in terms of nominal pipe size, wall thickness and material grade — beyond the currently produced at its existing Selangor plant.
“The existing factory does not have sufficient space to accommodate a new production line for other grades of carbon steel butt weld pipe fittings,” the company said. “The warehouse is for inventory storage of raw materials, work-in-progress, finished goods, packaging and labelling for order fulfilment as well as to support the introduction of new product ranges.”
The change in land acquisition plans followed regulatory delays with the “Original Land” purchased under its IPO, which was located approximately 2.5km away from its existing Klang operations, according to Pantech Global.
It added that while initial advice from the local authority suggested the land conversion would take six months, subsequent consultations revealed a need to secure Kebenaran Merancang first — a process that could extend the project timeline to over 36 months.
“To accelerate our expansion, the board resolved to acquire the proposed new land, which offers both time and cost efficiencies compared to the original land,” Pantech said. The company plans to dispose of the latter.
With the revised plan, Pantech Global said the total allocation for land acquisition under the IPO exercise — including ancillary costs — has been cut from RM35 million to RM30 million, with the RM5 million in savings channelled into construction works. The company has also scrapped plans to build a workers’ hostel using IPO proceeds, reallocating the RM3 million set aside for that to construction, raising the budget for factory works to RM16 million.
Any future workers’ hostel will be funded via internal resources or bank borrowings, it added.
Shares in Pantech Global closed half a sen or 0.96% higher at 52 sen on Friday, giving it a market capitalisation of RM446.25 million. The stock remains more than 23% below its IPO price of 68 sen when it was listed in the Main-Market in March this year.
Source: The Edge Malaysia (18 August 2025)