KUALA LUMPUR: United Asiapac Energy Bhd, an established player in Malaysia’s upstream oil and gas industry specialising in well intervention solutions, yesterday premiered on the ACE Market of Bursa Malaysia Securities Bhd, starting at 35 sen per share on its trading debut.
At the opening bell, a total of 2,376,500 shares were traded.
Managing director Ahmad Fadzuli Ali expressed his pride in the group’s debut on the ACE Market stating, “Today marks a major milestone as we debut on the ACE Market of Bursa Securities. This listing represents a significant step forward for United Asiapac Energy as a Malaysia-based provider of specialised well intervention services.”
He said their company has operational bases in Kemaman and Labuan, giving them a mobilisation edge that internationally based competitors cannot match.
As Malaysia’s offshore wells continue to mature, he added, demand for well integrity, fishing and plug-and-abandonment (P&A) work continues to grow, as driven by safety and regulatory requirements rather than oil price cycles, which gives their business a resilient foundation through market cycles.
Backed by strong fundamentals, a track record of more than 200 completed projects since 2021, and their plans to expand their equipment fleet and specialist workforce, they are confident that yesterday’s listing marked the beginning of an exciting new chapter for United Asiapac Energy, said Ahmad Fadzuli.
He added that they are excited by the encouraging response to their IPO, which was oversubscribed by more than 21 times.
“With this support, we have raised RM47.83 million to help the group boost our market presence and further expand our business,” he said.
Based on United Asiapac Energy’s enlarged issued share capital of 550 million shares and the IPO price of 35 sen per share, the group’s total market capitalisation is about RM192.5 million.
In a statement, the company said that the proceeds to be raised from the IPO will enable them to fund its next phase of growth.
United Asiapac Energy has earmarked 47.74% of the 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.
Supporting upstream oil and gas operators across the entire lifecycle of a hydrocarbon well, United Asiapac Energy delivers specialised well intervention solutions for exploration and drilling, production, mature field operations, as well as P&A. The company’s main services include fishing, P&A and sidetracking, alongside other specialised well intervention solutions that help its clients maintain well integrity, optimise production and safely decommission wells.
The company’s fishing services remove stuck or damaged equipment and debris from wells, while its P&A services safely seal wells that are no longer productive. It also provides sidetracking services to access new production zones or bypass damaged sections of wells.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent of the IPO.