Rakuten Trade Research believes that Pentech Holdings Bhd is significantly undervalued at its IPO price. The research house placed a fair value estimate of 42 sen per share on the company, which is more than twice its IPO offer price of 20 sen per share.

This suggests that Rakuten Trade expects strong growth potential and sees room for the stock price to appreciate once the company begins trading on the market. A fair value represents what analysts believe the stock should reasonably be worth based on factors such as earnings prospects, business fundamentals, industry outlook, and future expansion plans.