by HARIZAH KAMEL/ pic by RAZAK GHAZALI
OIL and gas (O&G) firm Ocean Vantage Holdings Bhd is set to accelerate its expansion plans with the money raised from its listing on the ACE Market of Bursa Malaysia yesterday.
The second listing this month debuted at a 65.4% or 17 sen premium over its offer price of 26 sen. The counter closed at 53 sen.
The Sarawak-based group’s IPO involved a public issue of 82.2 million new shares at an issue price of 26 sen apiece, representing 20% of its enlarged share capital and raised RM21.4 million for the group.
“With the RM21.4 million IPO proceeds, we will expand our range of support services in engineering, procurement and construction (EPC) and project management for the upstream O&G segment,” Ocean Vantage MD Kenny Ronald Ngalin (picture) told reporters after the listing ceremony in Kuala Lumpur yesterday.
RM3.2 million or 15.1% of the total proceeds will be used to broaden the group’s range of support services for the upstream O&G segment, including underwater diving services, advanced non-destructive testing and inspection services.
“We will develop these capabilities in-house and invest in new equipment and licensing to support the expansion,” Kenny said.
A further RM8.6 million (40.2%) will be used as capital expenditure to strengthen project management capabilities in the downstream O&G segment, RM6.6 million (30.7%) will go towards working capital and the remaining RM3 million (14%) is armarked for listing expenses.
Another priority is to strengthen the group’s market presence in the local downstream O&G segment particularly in Bintulu, Sarawak where petrochemical activities are aplenty.
The group will be building its teams in the business development and project management divisions, as well as purchasing new equipment and tools to enhance downstream capabilities.
“We believe there are more opportunities for us in the O&G industry. Furthermore, we are nimble and asset-light, thus, making us highly adaptive to changes in our operating environment,” Kenny said.
Despite market volatilities in the O&G industry, Kenny believes Ocean Vantage is equipped to weather the storm, after having survived and “thrived” in a low oil price environment.
The firm’s ED Stephen Yau Kah Tak reiterated the sentiment, adding the group is “not negatively impacted at all” by the Covid-19 pandemic as it continues to seek other business opportunities.
While Bintulu will be the group’s primary focus, it will also be active in Sabah and West Malaysia, while continuing to pursue overseas opportunities.
The O&G services provider has a global footprint in more than 15 countries across five regions. Currently, it supplies various services to one of its clients in Suriname.