Saturday, 04 Jul 2020
BUSINESS
30/06/2020 06:17 PM

KUALA LUMPUR, June 30 -- Ocean Vantage Holdings Bhd, a Sarawak-based oil and gas (O&G) integrated support services provider, expects to raise RM21.4 million under its initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities for its expansion plans.

Of the RM21.4 million proceeds to be raised from its public issue, RM3.2 million or 15.1 per cent will be used to broaden its range of support services for the upstream O&G industry to include underwater diving services as well as advance non-destructive testing and inspection services.

“Meanwhile, RM8.6 million (40.2 per cent) will be used as capital expenditure to strengthen its project management capabilities in the downstream O&G segment, RM6.6 million (30.7 per cent) for working capital, with the balance RM3.0 million (14.0 per cent ) earmarked for listing expenses,” the company said in a statement today.

Managing director Kenny Ronald Ngalin said the company was excited to be another step closer to being a listed entity.

“Besides elevating our status to the next level, proceeds from the listing will help fund our expansion plans.

“We are charting our way forward, steadfastly focused on our longer-term objectives and strategic directions, notwithstanding the current challenging operating landscape,” he said.

Kenny said the O&G industry outlook remained promising for outsourced support services providers such as Ocean Vantage, as major industry players were increasingly consolidating their operations and workforce, preferring to outsource functions to external service providers.

“Additionally, we are expanding our market presence in the downstream segment to further capitalise on the opportunities arising from development activities in the onshore areas along the Sarawak Corridor of Renewable Energy,” he said.

Its IPO exercise entails a public issue of up to 82.2 million new shares, representing 20 per cent of its enlarged share capital and an offer for sale of up to 41.1 million existing shares by way of a private placement to identified investors. 

Ocean Vantage is scheduled to be listed on the ACE Market on July 22.

On listing, Ocean Vantage will have a market capitalisation of RM106.9 million based on the issue price of 26 sen per share and its enlarged share capital of 411.0 million shares.

-- BERNAMA

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