KUALA LUMPUR: United Asiapac Energy Bhd, a specialised oil and gas services provider focusing on well intervention solutions for the upstream segment, is expected to register a net profit of RM13.5 million and RM18.2 million for FY5/26 and FY5/27.
Rakuten Trade Sdn Bhd, in a report, said with positive expansionary plans, margin expansion, and strong Petroliam Nasional Bhd (Petronas) credentials, United Asiapac plans to drive future growth by expanding its revenue-generating capacity using its initial public offering (IPO) proceeds.
The research firm noted that United Asiapac will be investing RM23.26 million to acquire additional well intervention equipment, enabling it to undertake more projects, reduce reliance on rented tools, improve mobilisation efficiency and enhance margins.
The group also intends to recruit additional technical and commercial personnel, introduce new well
intervention solutions, strengthen working capital and establish a new corporate office to support its expanding operations.
Further, beyond increasing capacity, United Asiapac intends to grow its revenue by securing more contracts from existing and new upstream operators through its expanded equipment fleet, experienced technical workforce and comprehensive Petronas and Petroleum Sarawak Bhd (Petros) licences.
“Greater equipment ownership is expected to improve service responsiveness and turnaround time, thus strengthening its competitive position while supporting higher margins,” the research firm said.
Rakuten Trade also noted that the introduction of new well intervention services is also expected to deepen customer relationships and create cross-selling opportunities across fishing, plug and abandonment (P&A), sidetracking and other specialised intervention services.
The firm also noted that United Asiapac maintains a healthy balance sheet with net gearing of 0.09x as of the financial period ending Feb 2026.
“With the IPO proceeds post-listing, the company is poised to achieve a net cash position,” Rakuten Trade said.
In recent news, United Asiapac Energy said the group remains optimistic about the industry outlook, as current trends in the oil and gas industry are expected to sustain demand for specialised well intervention services.
The group said that 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.
Further, 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 RM0.35 a share.
Based on the group’s enlarged share capital of 550 million shares and the IPO price, the market capitalisation of United Asiapac Energy will be approximately RM192.5 million upon listing.
The proceeds from the IPO will be utilised to fund its 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, 2026.
Rakuten Trade has initiated coverage on United Asiapac Energy with a Buy call and fair value of RM0.50 based on a 15x price-to-earnings ratio (PER) over FY5/27 earnings per share (EPS), implying a potential upside of 42.9% over its 35 sen IPO price.
