KUALA LUMPUR: Elsa Bhd, an asset-light oil and gas (O&G) service equipment provider, aims to strengthen its market presence as a provider of O&G service and equipment solutions in Malaysia, and increase the number of projects in its portfolio.
Berjaya Research Sdn Bhd, in a note, said the group intends to allocate RM17.8 million from the IPO proceeds to fund consultant-related expenses for the oilfield service solutions and digital solutions segments, as well as to procure drones for the provision of robotics and engineering solutions.
“At present, Elsa operations are backed by 140 ongoing projects along with 157 tenders in the pipeline,“ the research firm said.
Further, Berjaya Research also noted that to support the execution of existing and future projects related to robotics and engineering solutions which require autonomous underwater vehicle (AUV) subsea pipeline inspection services, the group intends to allocate RM3 million from the IPO proceeds to invest in the hiring of an additional nine personnel to form an in-house technical team for the management and deployment of Rovula (Thailand) Co Ltd’s Xplorer, an AUV for subsea pipeline inspection services, as well as for subscription to an asset integrity and inspection software.
Meanwhile, the group’s robotics and engineering solutions segment has been the fastest-growing business segment over the years, with revenue jumping from RM0.8 million in 2022 to RM26 million in 2025, representing a three-year compound annual growth rate (CAGR) of 221.2%.
To note, Elsa provides a comprehensive range of O&G services, enabling the group to support customers throughout the project lifecycle, from supplying skilled manpower and technical expertise to delivering specialised equipment, digital technologies, and engineering capabilities.
The group has strong industry credentials and technology partnerships, with a Petroliam Nasional Bhd (Petronas) licence covering 269 SWEC categories, which allows Elsa to supply a wide range of products and services to Malaysia’s oil and gas sector.
This extensive licensing capability has helped the group establish a network of 27 active multinational technology partners, strengthening its access to advanced technologies and specialised industry solutions.
Furthermore, the group serves major players in the oil and gas industry with long-standing relationships, supported by repeat contracts spanning 2–10 years, demonstrating customer confidence in Elsa’s capabilities.
Berjaya Research also noted that Elsa’s growth initiatives are reinforced by RM17.8 million in IPO proceeds, 140 ongoing projects, and 157 tenders currently in the pipeline.
As part of a rapid expansion plan for its robotics and engineering solutions, Elsa is investing RM3 million to expand its capabilities in these areas.
On earnings, Berjaya Research noted that Elsa’s revenue recorded an impressive three-year CAGR of 39.5% to RM 264.7 million between 2022 and 2025, driven by growth in the talent solutions as average monthly headcount continues to expand.
The group also sees its digital solutions contributing to increased project wins, while robotics and engineering solutions contribute to the addition of new projects secured over the years.
“Expanding into these higher-technology niche solutions allows the group to secure additional opportunities, complementing the traditional manpower provision.
“Consequently, the group’s core PATAMI expanded at a three-year CAGR of 27.3% to RM11.1 million between 2022 and 2025,“ Berjaya Research noted.
To recap, Elsa opened applications for its IPO on the ACE Market on May 21, 2026, to raise RM35.6 million for the O&G services.
The IPO, priced at 23 sen per share, will raise RM27.23 million from a public issue of new shares for the company and another RM8.37 million for three shareholders from an offer for sale of existing shares, according to its prospectus.
Upon listing, Elsa will have a market capitalisation of about RM124 million.
Applications for the IPO closed on June 3, and Elsa is scheduled to list on June 16.
“Our fair value at RM0.33 represents a premium of 43.5% over its IPO offer price of RM0.23, based on our projected 2027 EPS of 3 sen pegged to a target price-to-earnings (P/E) multiple of 11x.
“Our valuation is benchmarked against selected local O&G services equipment solutions-related players listed on Bursa Malaysia,“ Berjaya Research said.
Key risk factors include non-renewal of the Petronas licence, changes in Petronas policies, and the Petronas Group as a single-customer risk, and the group’s dependence on existing contracts.
