Propel Global confident of expansion plans on new structure, fresh cash injection

PETALING JAYA: Propel Global Bhd is confident that the new corporate structure as well as the cash reserve resulting from a regularisation plan that will see it take over the listing status of Daya Materials Bhd today will support expansion plans for both the oil and gas (O&G) and building technical services businesses that the group is acquiring from Daya Materials.

The listing of Propel Global follows the approval by shareholders at an EGM on Jan 21 of a regularisation plan for Daya Materials that had been proposed on Dec 31, 2020.

Propel Global group CEO Angeline Lee said it has seen the private placement representing 41% of its outstanding shares fully taken up by prominent investors and industry veterans. As a result of the funding from the private placement, Propel Global has a healthy cash balance and minimal debt as the gearing ratio has been reduced to 0.6 times.

“The group is actively exploring opportunities in the O&G industry especially in Sabah and Sarawak. High crude oil prices will encourage more investments into the industry, especially from oil majors. The country’s borders reopening will spur business activities and therefore demand for oil and gas,” Lee said in a statement.

She added that the group will continue to concentrate on expanding its existing well intervention and pipe recovery business by training its field engineers to deliver a wider range of downhole well technology solutions for clients.

“Over the mid-term, we are looking to venture into the wireline business as this will make us more competitive in the plug and abandonment as well as the decommissioning programmes for both downstream and upstream facilities.

“We also see more opportunities opening up for the building technical services business as foreign multinational companies investing in Malaysia set up their plants and facilities. We intend to leverage on the synergy from our construction and project management technical services as well as heating, ventilation and air conditioning operation and maintenance services to grow the building technical services business.”

Propel Global also has mid-to-long-term plans to venture into sustainable development and digital technology as part of the group’s transition to a zero-carbon business focus that includes renewable energy and electrification.