PETALING JAYA: TMD Energy Ltd, a Malaysia and Singapore-based provider of integrated marine bunkering services and part of Straits Energy Resources Bhd, announced today that its shares have been listed and began trading on the NYSE American – an exchange designed for growing companies – on Monday under the ticker symbol “TMDE”.
TMD Energy’s share price opened at US$3.26, rising to an all-time high of US$4.12 on its market debut before closing at US$3.63, which was 11.69% higher than its initial public offering (IPO) price of US$3.25 per share.
This gave the company a market capitalisation of US$83.85 million (RM367.2 million) on its first day as a publicly listed company.
TMD Energy IPO’s proceeds (excluding over-allotments) before deducting underwriting discounts and other related expenses totalled about US$10.08 million (RM44.13 million). The proceeds from the IPO will be used for the purchase of cargo oil, defraying listing expenses, working capital and other general corporate purposes.
In a statement, the company said it has granted the underwriter a 45-day option to purchase up to an aggregate of 465,000 additional shares to cover over-allotments at the IPO price, If the underwriter exercises their option to purchase the additional shares in full, the total gross proceeds before deducting underwriting discounts and other related expenses from the offering are expected to be about US$11.59 million.
“We are proud to become the first Malaysian marine bunker supplier to achieve a listing on a major US exchange, reinforcing our position as one of the industry’s leading players. Leveraging Malaysia’s strategic location along major shipping routes including the Straits of Malacca and the South China Sea, as well as resilient demand for bunker fuel in the region and globally, we are well positioned for further expansion. On top of that, TMD Energy is also the first Malaysian company to list on the NYSE American,” said chairman, executive director and CEO, Datuk Seri Ron Ho Kam Choy.
He added that their listing in NYSE American will help them to enhance their international profile, expand their reach, capture new markets, and deliver sustainable, higher returns to their shareholders.
“Our debut on the NYSE American is a key milestone in our journey of growth. While continuing to drive strong organic growth, as part of our strategic growth initiatives, we remain focused on identifying and pursuing strategic mergers and acquisition opportunities that align with our long-term vision and strengthen our regional presence,” said executive director Datuk David Yoong Leong Yan.
TMD Energy and its subsidiaries (TMD Energy Group) are mainly involved in marine fuel bunkering services specialising in the supply and marketing of marine gas oil and marine fuel oil to various types of ships and vessels at sea. In addition, the Company provides vessel chartering services and vessel management services.
TMD Energy Group operates in 19 ports across Malaysia, with a fleet of 15 well-maintained bunkering vessels with capacities ranging from 540 deadweight tons (dwt) to 7,820 dwt, of which nine are double-bottom and double-hull vessels with an average cargo-carrying capacity of 4,200 dwt each. Its customers include ship owners and operators, shipping lines, logistics and freight companies, as well as oil and gas traders or brokers. In 2023, Tumpuan Development Sdn Bhd, its indirect wholly owned subsidiary, became the first Malaysian industry player to be recognised as a biofuel supplier and trader under the International Sustainability and Carbon Certification scheme, underscoring its commitment to reducing shipping’s carbon footprint and leading sustainability initiatives within the region.
TMD Energy’s growth strategy includes expanding its market presence across Southeast Asia, growing its bunkering fleet, providing ship management services to external customers and diversifying its fuel offering to include eco-friendly alternative fuels such as biodiesel.
TMD Energy is part of Straits Energy Resources, a Fortune Southeast Asia 500 company listed on the ACE Market of Bursa Malaysia Securities. Besides oil trading and bunkering, Straits Energy Resources is involved in a diverse range of businesses including ship-to-ship operations, ship management services, shipping agency, telecommunication and networking services, and inland transport and logistics.
