United Asiapac Energy Bhd closed its maiden trading session on Bursa Malaysia’s ACE Market at 31 sen on Sept 14, four sen or 11.4% below its 35 sen IPO price, after opening flat at the issue price.
The specialised well intervention services provider slipped to 34 sen by the midday break before closing at 31 sen, with 40.79 million shares traded.
Based on its enlarged share capital of 550 million shares, the closing price valued United Asiapac Energy at about RM170.5 million compared to an IPO market capitalisation of RM192.5 million.
Managing Director Ahmad Fadzuli Ali said the listing marked a major milestone for the company as it seeks to expand its position in Malaysia’s upstream oil and gas services industry.
He said United Asiapac Energy’s operating bases in Kemaman and Labuan give it a mobilisation advantage, while demand for well integrity, fishing and plug-and-abandonment services is expected to be supported by Malaysia’s ageing offshore wells and regulatory requirements.
The company has completed more than 200 projects since 2021 and plans to expand its equipment fleet and specialist workforce.
United Asiapac raised RM47.83 million from the IPO, which was oversubscribed by more than 21 times.
Of the proceeds, 47.74% will go towards purchasing well intervention tools and equipment, 11.29% for a new corporate office, 10.83% for workforce expansion, 5.83% to repay bank borrowings and 4.93% to recruit engineers for new well intervention solutions. The balance is earmarked for working capital and listing expenses.
The company provides specialised services across the lifecycle of hydrocarbon wells, including fishing, plug-and-abandonment and sidetracking services.
TA Securities Holdings Bhd is the principal advisor, sponsor, underwriter and placement agent for the IPO.
