Pentech Holdings Berhad
PENTECH0457ShariahMITIListedPublic Investment Bank Berhad · ACE Market · Listing 15 Jun 2026
Auto Summary
Revenue
PAT
Margins & Gearing
Utilisation Of Proceeds
Valuation Breakdown
Category Scores
Growth Vs Risk Matrix
Growth increases upward and risk decreases to the right, so the most attractive IPOs sit in the top-right quadrant.
Pentech has the most coherent growth story across both batches. Revenue compounded 17.0% a year to RM232.9m, PAT compounded 16.4% to RM10.59m, and gross margin improved in every year of the review period - growth and profitability moving together rather than trading off, which is rare in this cohort. Earnings quality is supported by a balance sheet that eliminated bank borrowings entirely by FYE2025, leaving the group net cash, although a 1.48x current ratio shows the working capital of a hardware-inclusive model still absorbs most of it. The use of proceeds is the strongest in the batch: 80.6% funds a new security operations centre, OCC upgrades and ICT service expansion, all of which push the mix toward recurring higher-margin revenue and away from thin hardware resale. Listing expenses are a restrained 13.08%. At 11.7x earnings and 2.0x pro forma book the multiple is undemanding for that profile. Principal risk is margin structure: at 14.9% gross, small vendor pricing shifts matter. This is the batch's best combination of growth, balance sheet and proceeds discipline.
Strengths
- Revenue compounded 17.0% and PAT 16.4% a year over FYE2023-FYE2025. - Gross margin rose every year of the review period, from 12.0% to 14.9%. - Bank borrowings eliminated entirely by FYE2025, leaving the group in a net cash position. - 80.6% growth allocation, the highest of any IPO in either batch apart from Stratus.
Weaknesses
- Gross margin of 14.9% is structurally thin because hardware resale dilutes the services mix. - Current ratio of 1.48x is modest despite the absence of borrowings. - Equity of RM31.5m is small relative to RM232.9m of revenue carried. - Managed-services revenue depends on retaining a concentrated enterprise customer base.
Opportunities
- The new SOC converts project work into recurring managed-security revenue. - Upgrading the OCC infrastructure raises the service ceiling for existing accounts. - Kuala Lumpur expansion extends a Penang-anchored business into the largest domestic market.
Threats
- Hardware-inclusive contracts expose margin to vendor pricing and currency movements. - Global system integrators compete aggressively for Malaysian enterprise accounts. - Enterprise IT refresh cycles are deferrable when corporate budgets tighten.
IPO Balloting Calculator
Tier snapping, subscription cost, and expected-value estimate.
| Units | Tier | Cost | Success | Open Profit | Open EV | Hold Profit | Hold EV |
|---|---|---|---|---|---|---|---|
| 100 | 1 | RM20 | 0.83% | RM4 | RM0 | RM10 | RM0 |
| 300 | 2 | RM60 | 0.87% | RM12 | RM0 | RM30 | RM0 |
| 1,100 | 3 | RM220 | 0.91% | RM44 | RM0 | RM110 | RM1 |
| 2,100 | 4 | RM420 | 0.95% | RM84 | RM1 | RM210 | RM2 |
| 3,100 | 5 | RM620 | 0.99% | RM124 | RM1 | RM310 | RM3 |
| 4,100 | 6 | RM820 | 1.03% | RM164 | RM2 | RM410 | RM4 |
| 6,100 | 7 | RM1,220 | 1.07% | RM244 | RM3 | RM610 | RM7 |
| 11,100 | 8 | RM2,220 | 1.12% | RM444 | RM5 | RM1,110 | RM12 |
| 20,100 | 9 | RM4,020 | 1.16% | RM804 | RM9 | RM2,010 | RM23 |
| 50,100 | 10 | RM10,020 | 1.20% | RM2,004 | RM24 | RM5,010 | RM60 |
| 100,100 | 11 | RM20,020 | 1.24% | RM4,004 | RM50 | RM10,010 | RM124 |
| 200,100 | 12 | RM40,020 | 1.28% | RM8,004 | RM103 | RM20,010 | RM256 |
| 500,100 | 13 | RM100,020 | 1.32% | RM20,004 | RM265 | RM50,010 | RM661 |
| 1,000,100 | 14 | RM200,020 | 1.36% | RM40,004 | RM546 | RM100,010 | RM1,364 |
| 2,000,100 | 15 | RM400,020 | 1.41% | RM80,004 | RM1,124 | RM200,010 | RM2,811 |
| 5,000,100 | 16 | RM1,000,020 | 1.45% | RM200,004 | RM2,893 | RM500,010 | RM7,233 |
| 10,000,100 | 17 | RM2,000,020 | 1.49% | RM400,004 | RM5,951 | RM1,000,010 | RM14,879 |
The trailing 100 units are intentional: applying just over a boundary, such as 20,100 instead of 20,000, lands in the next balloting tier. Success rate is a heuristic, not published balloting odds.
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