Pentech Holdings IPO: ICT Infrastructure Firm Lists on ACE Market at 20 Sen

Pentech Holdings Berhad, a Penang-based enterprise information and communication technology (ICT) infrastructure integration firm, has opened its initial public offering (IPO) at 20 sen per share. The company aims to raise around RM34.4 million through its listing on the ACE Market of Bursa Malaysia, with the listing date targeted for 15 June 2026.

For investors tracking the flow of IPOs on Bursa Malaysia, Pentech adds to the list of technology companies heading to the local capital market in 2026. What makes this IPO interesting? Let us walk through the full details, business model, financial performance, and what investors should understand before making a decision.

What Is Pentech Holdings Berhad?

Pentech Holdings Berhad is an investment holding company that operates through its wholly-owned subsidiary, Pentech Solution Sdn Bhd. Based in Penang, Pentech's core business is the integration of enterprise-grade ICT infrastructure for corporate clients.

In short, Pentech's business covers three main pillars:

• Enterprise ICT infrastructure integration - designing, building and integrating network systems, servers, data storage and cybersecurity for large organisations.
• Hardware and software supply - supplying ICT equipment and software licences from technology vendors.
• Cloud, managed and other services - including subscription-based services that generate recurring revenue.

According to The Star, Pentech is not merely an ordinary hardware supplier. The company is moving towards higher-value services such as a Security Operations Centre and an Operations Command Centre, which form the ICT backbone for many large companies in Malaysia.

Full Pentech IPO Details

Here is a summary of the key terms of the Pentech Holdings IPO as reported in the company's prospectus:

Detail	Information
Company name	Pentech Holdings Berhad (code: 0457)
Market	ACE Market, Bursa Malaysia
IPO price	RM0.20 (20 sen) per share
New shares issued	171,995,000 shares (27.74% of enlarged capital)
Total capital after IPO	620,000,000 shares
Funds to be raised	RM34.4 million
Initial market capitalisation	RM124 million
Application open date	20 May 2026
Application close date	29 May 2026
Balloting date	4 June 2026
Targeted listing date	15 June 2026
Principal Adviser / Sponsor	Public Investment Bank Berhad
Shariah status	Shariah-compliant

Investors should note that the Pentech IPO application period has already closed on 29 May 2026, with the balloting process scheduled for 4 June 2026. For those who missed the application window, the opportunity to buy Pentech shares remains open on the open market after the listing on 15 June 2026. You can refer to the official prospectus at the Bursa Malaysia website.

Share Offering Breakdown

Of the 171,995,000 new shares offered, the allocation is as follows:

• Malaysian public: 31,000,000 shares (5%), with 50% reserved for Bumiputera investors.
• Eligible Persons: 31,000,000 shares (5%) via Pink Form allocation - typically for directors, employees and contributors to the company's success.
• Private placement: 32,495,000 shares (5.24%) for selected investors.
• MITI-approved Bumiputera investors: 77,500,000 shares (12.5%).

This structure shows that the largest portion of the offering is channelled to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI), a common feature in many Bursa Malaysia IPOs. If the public offering is oversubscribed, the allotment of shares will be managed through a balloting process.

Where Will the Pentech IPO Funds Go?

One of the most important things investors should examine in any IPO is the use of proceeds. For Pentech, about 70% of the funds will be channelled towards business expansion, a positive sign because it shows the money is being used for growth rather than simply paying off old debt.

The breakdown of the RM34.4 million in proceeds is as follows:

• RM9.4 million - establishing a new Security Operations Centre.
• RM8.1 million - upgrading the Operations Command Centre infrastructure.
• RM6.74 million - expanding ICT service offerings.
• RM3.5 million - marketing and promotional activities.
• RM2.16 million - working capital.
• RM4.5 million - listing expenses.

The significant investment in the Security Operations Centre and Operations Command Centre reflects Pentech's strategic direction towards higher-value cybersecurity and managed services - a segment whose demand is rising as cyber threats grow increasingly complex in Malaysia.

Financial Performance & Shift to a Subscription Model

What makes Pentech interesting compared with conventional ICT firms is its shift towards recurring revenue. According to BusinessToday, subscription-based cloud and managed services now account for more than 20% of its financial year 2025 (FY2025) revenue.

This shift is important because the subscription model provides more stable and predictable cash flow compared with one-off hardware sales. For investors, companies with high recurring revenue are usually valued at a more premium multiple.

In addition, Pentech's services to the financial services sector reportedly grew rapidly - from around RM3 million in 2022 to RM28 million in 2025. This growth demonstrates the company's ability to win contracts from financial institutions, which typically have stringent security and compliance requirements.

Before investing in any IPO, it is important to understand how to read a company's financial statements. You can learn the basics through our guides on how to read an income statement and using the PE Ratio to value a stock.

Analyst View & Valuation

Early sentiment towards the Pentech IPO appears positive. The IPO's principal adviser, Public Investment Bank Berhad, acts as the Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent.

Several research houses have assigned a fair value higher than the IPO price. For example, a fair value of around RM0.40 per share has been suggested - roughly double the 20 sen IPO price, reflecting significant potential upside if projections are met. The three-year earnings growth (CAGR) is estimated at around 17.1%, with core profit (core PATMI) expected to reach between RM12.5 million and RM17.0 million over the next three years.

However, investors should remember that fair value is a projection based on certain assumptions, not a guarantee. The actual performance of the stock after listing depends on many factors, including market sentiment, the company's ability to meet growth targets, and overall economic conditions.

Shariah Compliance Status

For Muslim investors, another piece of good news is that Pentech Holdings shares have been classified as Shariah-compliant by the Shariah Advisory Council of the Securities Commission Malaysia. This means Pentech shares can be included in a Shariah-compliant investment portfolio.

This Shariah-compliant status puts Pentech in line with several other Shariah-compliant technology IPOs, such as OGX Group Berhad's IPO, which is also an IT company heading to the ACE Market. To understand more about how a stock is assessed from a Shariah perspective, you can refer to our guide on Shariah financial screening and the 33% benchmark.

Risks to Watch

Every IPO investment carries risk, and Pentech is no exception. Among the things investors should consider:

• Dependence on key customers - enterprise ICT firms often depend on a few large customers. Losing a single major contract could materially affect revenue.
• Intense competition - the ICT integration sector in Malaysia has many players, including larger multinational companies.
• Dependence on leadership - Pentech's Chief Executive Officer, Yeoh Chin Ming, controls around 52% of the company and plays a key role in operations.
• Execution risk - the success of the expansion into the Security Operations Centre and new services depends on the company's ability to execute its plans effectively.

Investors should also be aware that ACE Market shares are generally more volatile than Main Market shares, as they involve smaller and newer companies.

How to Invest in a Bursa Malaysia IPO?

For beginners, to invest in an IPO or buy shares on Bursa Malaysia, you need two basic things: a stock trading account and a CDS (Central Depository System) account. The CDS account electronically records your share ownership.

Once you have an account, you can apply for an IPO via:

• Participating bank ATM machines
• Internet banking
• Your online broker platform

If you missed the Pentech IPO application window, you can still buy the shares on the open market after it is listed on 15 June 2026, just like buying any other listed stock.

FAQ

When is the Pentech Holdings listing date?
Pentech Holdings is targeted to be listed on the ACE Market of Bursa Malaysia on 15 June 2026.

What is the Pentech IPO price?
The Pentech IPO price is set at RM0.20 (20 sen) per share.

Are Pentech shares Shariah-compliant?
Yes, Pentech Holdings shares have been classified as Shariah-compliant by the Shariah Advisory Council of the Securities Commission Malaysia.

How much is Pentech raising from the IPO?
Pentech aims to raise around RM34.4 million from this IPO, with an initial market capitalisation of RM124 million.

What is Pentech Holdings' core business?
Pentech is engaged in enterprise ICT infrastructure integration, hardware and software supply, as well as cloud and managed services through its subsidiary Pentech Solution Sdn Bhd.

Can I still buy Pentech shares after the IPO application window closed?
Yes. Although the IPO application period closed on 29 May 2026, you can buy Pentech shares on the open market after the listing on 15 June 2026, provided you have a stock trading account and a CDS account.

Who is the principal adviser for the Pentech IPO?
Public Investment Bank Berhad acts as the Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent for this IPO.

Conclusion

The Pentech Holdings IPO offers investors an opportunity to take part in an ICT infrastructure company that is shifting towards higher-value recurring service models such as cybersecurity and managed services. With a 20 sen IPO price, Shariah-compliant status, and the majority of funds channelled towards expansion, the company's fundamentals look attractive. Nevertheless, as with all investments, investors should weigh the potential returns against the risks involved and do their own research before making a decision.

Interested in starting to invest in IPOs and stocks on Bursa Malaysia? The first step is to have an account that lets you trade.

Open your CDS and stock trading account to start investing on Bursa Malaysia as well as foreign markets such as the United States and Hong Kong.

You can also download our free stock investing basics ebook to understand the key concepts before investing real money.

Further Reading

• IPO OGX Group Berhad 2026: A Shariah-Compliant IT Company Heading to the ACE Market
• IPO TeamStar (ACE Market): Shariah-Compliant in the Furniture Accessories Industry
• IPO Ambest Group Berhad: Precision Machining & CNC Engineering Firm
• Bursa Malaysia Targets Quality Over Quantity: RM28 Billion IPO Focus for 2026
• PE Ratio: How to Know if a Stock Is Expensive or Cheap by Sector in Malaysia