Tuesday, October 19

Ocean Vantage’s public issue oversubscribed by 15.90 times

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KUCHING: Sarawak-based oil and gas (O&G) integrated support services provider, Ocean Vantage Holdings Bhd, has received strong response for its listing on the ACE Market of Bursa Malaysia Securities Bhd.

According to a statement, managing director Kenny Ronald Ngalin said the company’s listing exercise entailed a public issue of 82.2 million new ordinary shares at an issue price of 26 sen per share; representing 20 per cent of its enlarged issued share capital.

The company has managed to raise approximately RM21.4 million in proceeds from its initial public offering (IPO).

Out of the 82.2 million shares, Kenny said 20.5 million shares are for application by the Malaysian public, 4.1 million shares for eligible directors and employees while 57.54 million shares have been earmarked for private placement to selected investors.

“Additionally, the company’s offer for sale of 41.1 million existing shares by way of private placement to selected investors have all been fully placed out,” said Ronald.

He said the company received 5,509 applications for 347.29 million shares with a value of RM90.3 million from the Malaysian public for the 20.5 million shares, representing an oversubscription of 15.90 times.

“We are truly heartened by the positive response we received for our IPO. We believe the oversubscription rate reflects the confidence that the investing public has in our business model and future plans,” he said.

Ronald said notices of allotment will be posted to all successful applicants on or before July 21, 2020.

Over the mid-term, the company would focus on capturing a market share in the support services sector for the upstream segment by developing more in-house capabilities such as underwater diving services and advance non-destructive testing and inspection services.

“At the same time, we will also broaden our business horizon in the downstream segment.

“Backed by our strong industry know-how, we believe we will be able to replicate our success in this thriving business segment,” he said.

An integrated support services provider for both upstream and downstream of the O&G industry, Ocean Vantage’s services include engineering, procurement and construction (EPC) and project management, supply of manpower, supply of materials, tools and equipment, as well as provision of drilling rig charter services.

The company is slated to be listed on the ACE Market of Bursa Securities on July 22.

Upon listing, Ocean Vantage will have a market capitalisation of RM106.9 million based on the issue price of 26 sen and an enlarged share capital of 411 million shares.

M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.