Petronas partners investment banks to support OGSE vendors’ participation for IPO

The listing will present opportunities and more benefits for OGSE vendors


PETROLIAM Nasional Bhd (Petronas) is collaborating with six investment banks and corporate finance advisors to advise vendors in the oil and gas services and equipment (OGSE) sector who plan to pursue an IPO.

Petronas group procurement VP Liza Mustapha said listing will present opportunities and more benefits for OGSE vendors, especially the ones looking for expansion of their business offerings, including new technologies, digitalisation, diversification and overseas growth.

“By being listed, OGSE vendors would be maintaining high standards of management, implementing good governance and always be on the lookout to expand and grow; all of which would enhance sustainability and resiliency of their businesses.

“Public profile and visibility would also be much elevated once our vendors are listed, enabling further rapid growth in Malaysia and also overseas,” she said in a statement yesterday.

The company handed over the memoranda of understanding (MoUs) at an event to KAF Investment Bank Bhd, Kenanga Investment Bank Bhd, MIDF Amanah Investment Bank Bhd, DWA Advisory Sdn Bhd, MainStreet Advisers Sdn Bhd and Wyncorp Advisory Sdn Bhd.

The MoUs are set to ease OGSE vendors’ selection of advisors who will support them with pre-IPO offerings and IPO advisory for Leading Entrepreneur Accelerator Platform (LEAP), a platform for small and medium enterprises (SMEs) and start-ups to raise capital on Bursa Malaysia.

However, the MoU does not limit the OGSE vendors from selecting and working with other investment banks and corporate finance advisors.

The initiative is also part of the programme launched in May 2019 called the “Petronas Lestari: Road to Bursa”, in collaboration with Bursa Malaysia, which encourages the listing of potential OGSE vendors on the local bourse to improve resilience and sustainability.

Bursa Malaysia securities market director Mahdzir Othman said OGSE vendors should get listed on the Malaysian stock exchange.

“At Bursa Malaysia, we are proud to be an exchange that serves companies of all sizes. Home to more than 900 companies across 60 economic activities, Bursa Malaysia is the largest bourse in Asean in terms of the number of companies,” he said.

He added that collaboration is the key to mutual success and the partners look to strengthen the relationship further with Petronas to advance the oil and gas industry via the marketplace.

“Bursa Malaysia offers a robust platform for raising capital and investment, providing greater exposure and diversification.

“We offer listing avenues for companies of all sectors and sizes — the main market for established companies, the ACE Market for growth companies and the LEAP Market for SMEs, including startups,” he said.

Petronas has conducted IPO briefings as well as coaching sessions for about 60 vendors with potential to meet IPO requirements and will continue to identify vendors with high potential to be listed on Bursa Malaysia.