KUALA LUMPUR: United Asiapac Energy Bhd, a provider of well intervention solutions that support oil and gas operators, remains optimistic about the industry outlook, as current trends are expected to sustain demand for specialised well intervention services.
Managing director Ahmad Fadzuli Ali said as hydrocarbon wells continue to mature, operators are placing greater emphasis on maintaining well integrity, extending production life and carrying out safe and environmentally responsible plug and abandonment activities.
“We believe United Asiapac is well positioned to support these evolving requirements through our technical capabilities, operational experience and commitment to service excellence.
“As we continue to grow, we remain guided by the same principles that define our business: delivering reliable solutions and building long-term partnerships with our clients,“ he said at the group’s prospectus launch today.
Ahmad Fadzuli said United Asiapac Energy’s growth potential is in line with the positive outlook of the upstream oil and gas industry and supported by its competitive strengths.
Bursa Malaysia ACE Market-bound United Asiapac targets to raise RM48.73 million via the issuance of 139.22 million shares at 35 sen a share.
Based on the group’s enlarged share capital of 550 million shares and the initial public offering (IPO) price, the market capitalisation of United Asiapac Energy will be about RM192.5 million upon listing.
Proceeds from the IPO will be utilised to fund the group’s business expansion and support its next phase of growth.
United Asiapac Energy has earmarked 47.74% of the IPO proceeds to finance the purchase of well intervention tools and equipment, 11.29% for acquisition of a new corporate office, 10.83% for expansion of workforce, 5.83% for repayment of bank borrowings, and 4.93% for the recruitment of engineers to support the introduction of new well intervention solutions.
The remaining proceeds will be utilised for working capital and IPO-related expenses.
United Asiapac Energy is scheduled to be listed on Aug 19.
“We believe our post-IPO plans reflect our long-term commitment to continuously enhancing our capabilities, strengthening our competitive position and delivering greater value to our clients.
Looking ahead, we are confident that United Asiapac Energy is well-positioned to capture these opportunities and create sustainable value for all our stakeholders,“ Ahmad Fadzuli said.
For the nine-month period of FY26, United Asiapac Energy recorded a gross profit of RM21.9 million, surpassing its full FY25 gross profit of RM14.5 million by more than 50%, exceeding analyst expectations.
Ahmad Fadzuli said demand for the group’s well intervention solutions remains resilient despite heightened global geopolitical uncertainty, underscoring the defensive nature of the business.
“Our plug and abandonment (P&A) services support the maintenance, integrity, and safe decommissioning of existing wells rather than new exploration or development activities.
“As a result, demand for our services is not directly correlated with oil price movements, as operators must continue maintaining well integrity and fulfilling regulatory abandonment obligations regardless of prevailing crude prices.
“This has enabled us to sustain our growth momentum even as the broader industry navigates a more volatile operating environment.”
According to the prospectus, United Asiapac Energy delivers reliable and eco-friendly P&A services and supports clients in meeting industry standards for hydrocarbon well decommissioning, positioning the group as a partner of choice for operators seeking responsible and effective hydrocarbon well retirement services.
In broadening service offerings, the group plans to introduce e-line, slickline, and wireline recovery services, particularly for small-hole fishing.
In addition, it plans to offer hydrocarbon well cleanout services to remove obstructions and debris through the procurement of specialised tools. This expansion is a direct response to increasing market demand and enquiries from existing and prospective clients seeking well intervention solutions under a single service provider.
United Asiapac Energy also aims to expand market presence in well intervention solutions within Sarawak as the state presents significant opportunities for growth, driven by the anticipated increase in greenfield exploration activities and the maturing of existing hydrocarbon fields.
The group noted that with new fields being explored and developed, and mature fields nearing the end of their productive life, the resulting demand for well intervention, particularly P&A services, appears promising.
Additionally, the group is well-positioned to strengthen its foothold in Sarawak, supported by the experienced team.
