KUALA LUMPUR: Oil and gas services and equipment provider Steel Hawk Bhd’s (SHB) initial public offering (IPO) was oversubscribed 276.83 times ahead of its listing transfer from the LEAP Market to the ACE market of Bursa Malaysia.
The oversubscription rate of 276.83 times ranks as the highest subscription compared to all IPOs in the past 10 years, based on information extracted from the Bursa Malaysia website.
Deputy chairman and executive director Datuk Sharman K Michael said the incoming proceeds from the listing will fuel the group’s growth plans and expansion within the O&G industry.
“This strong market support validates SHB’s capabilities and strategic direction. The group will be well-positioned to capitalise on opportunities in the O&G services and equipment segments, driven by growing demand for more efficient and sustainable solutions,“ he said.
SHB provides onshore and offshore support services for the oil and gas (O&G) industry with core capabilities in engineering, procurement, construction, and commissioning (EPCC) services and maintenance of topside O&G facilities, installation and maintenance of oilfield equipment, and supply of oilfield equipment.
With more than 10 years of experience, SHB has the skills and knowledge to support clients in the oil and gas industry’s upstream, midstream, and downstream segments.
SHB’s IPO, undertaken in conjunction with its transfer of listing, involves issuing 134.70 million ordinary shares, featuring a public issue of 90.00 million new shares at an issue price of RM0.15 per share.
This represents 18.37% of the enlarged share capital, with RM13.50 million expected to be raised from the public
issue.
In addition, there is an offer for sale of 44.70 million existing shares by way of private placement to selected investors.
SHB has received 34,838 applications for 6.81 billion shares, with a value of approximately RM1.02 billion for the 24.50 million shares allocated to the Malaysian public, representing an oversubscription rate of 276.83 times.
For the Bumiputera portion, 16,582 applications were submitted for approximately 3.02 billion shares, resulting in an oversubscription rate of 245.25 times.
As for the public portion, 18,256 applications were submitted for approximately 3.79 billion shares, resulting in an oversubscription rate of 308.40 times.
The 12.25 million shares available for application by the eligible directors and employees, as well as persons who have contributed to the success of the company have been fully subscribed.
Meanwhile, the 53.25 million new shares and 44.70 million existing shares made available for application through a private placement to selected investors have also been fully placed out.
Notices of allotment will be posted to all successful applicants by September 3, 2024.
Sharman said part of the proceeds raised will be used to increase SHB’s fabrication capacity by building the new Teluk Kalung Facility 2.
He said this expansion will significantly increase SHB’s output capacity and reduce costs by reducing reliance on third-party subcontractors.
SHB will be listed on the ACE Market of Bursa Malaysia on September 5, 2024. Upon the transfer of listing, Steel Hawk will have a market capitalisation of approximately RM73.50 million based on issue price of RM0.15 per share and the enlarged share capital of 490.00 million shares.
UOB Kay Hian Securities (M) Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent of the transfer of listing.
