By Jazlin Zakri
KUALA LUMPUR (April 8): PMW International Bhd (KL:PMW) announced that it has entered into a share subscription and shareholders’ agreement with Sarawak Timber Industry Development Corporation (STIDC) to develop a concrete piles and poles manufacturing manufacturing facility in Tanjung Manis, Sarawak.
In a bourse filing, PMW said the arrangement was signed by its wholly-owned subsidiary PMW Winabumi (Sarawak) Sdn Bhd (PMWWS), whereby STIDC will subscribe for 20% ordinary shares and redeemable preference shares in the unit.
PMW said the arrangement will see STIDC contribute a parcel of industrial land measuring about 11.72 hectares in Tanjung Manis as consideration for its equity participation. The land is valued at RM12.5 million.
The Perak-based concrete products manufacturer will retain control of PMWWS with an 80% stake, while STIDC’s involvement is not deemed a joint venture, but rather an equity partnership to support the project.
The facility is set to manufacture spun concrete poles and piles, and is expected to enhance PMW’s presence in East Malaysia as well as expand its long-term production capacity. It added that production capacity is expected to increase from about 230,267 tonnes to 358,467 tonnes upon completion in the fourth quarter of 2027.
The company said the project is aligned with Sarawak’s industrial development plans and will benefit from ongoing infrastructure initiatives, including electricity grid expansion, hydropower projects and 5G rollouts under the Sarawak Corridor of Renewable Energy.
Proceeds from the subscription of redeemable preference shares will be used for capital expenditure, including construction, machinery and working capital requirements.
In a separate statement, PMW executive director and chief executive officer Lee Hon Hwa said the collaboration with STIDC represents a significant step in strengthening PMW’s presence in East Malaysia.
“We believe this collaboration positions PMW well to participate in Sarawak’s infrastructure development and to be part of the state’s critical supply chain in the years ahead,” said Lee.
STIDC is a statutory body established under the Sarawak Timber Industry Development Corporation Ordinance 1973. It is principally involved in the development and promotion of timber-based industries, facilitation of industrial land and infrastructure development, and supporting industrialisation initiatives within Sarawak.
Prior to the agreement, PMW subscribed for 100,000 ordinary shares in PMWWS at RM1 per share. The consideration for the land will be satisfied through RM4 million in cash and RM8.5 million in share issuance, comprising two million ordinary shares and 6.5 million redeemable preference shares (RPS).
Following this, PMW will subscribe for an additional 7.9 million ordinary shares at RM1 per share, resulting in a shareholding structure of 80% for PMW and 20% for STIDC. PMW will also subscribe for 26 million RPS, while STIDC will hold 6.5 million RPS.
The land valuation was based on an independent assessment of RM10 million, with a premium of RM2.5 million reflecting strategic advantages such as location within a controlled industrial zone, access to river logistics and facilitation through a state corporation partnership. PMW said the premium is commercially justified given the long-term economic benefits and execution efficiency.
PMW listed on the ACE Market on Nov 18, 2025. On Wednesday, its shares were up by one sen or 3.5% at 29.5 sen ahead of the announcement. At its last price, the group has a market capitalisation of RM263.2 million.