KUALA LUMPUR (Oct 29): Oil and gas (O&G) support services provider Steel Hawk Bhd, which made its LEAP Market debut on Friday at 30 sen per share — up 10 sen from its initial public offering (IPO) price of 20 sen — jumped another 20 sen to 50 sen apiece at the time of writing.

That is an increase of over 66% from its 30 sen opening price, and up 150% from its IPO price.

The company, which is mainly involved in the provision of engineering, procurement, construction, and commissioning (EPCC) services for chemical injection skids and improvement or maintenance of topside O&G facilities, saw 20,000 shares traded at the time of writing.

In a statement, Steel Hawk said the listing exercise aimed to raise RM3.2 million for the company, of which RM413,000 will be used to set up two fire-rated door assembly lines to help reduce production cost, and RM730,000 will be allocated to build a mud cooler system to remain competitive when bidding for contracts instead of renting the system.

Meanwhile, RM757,000 will be for working capital, whereas the remaining gross proceeds will be utilised to cover listing expenses.

Steel Hawk added that it has set a policy to distribute at least 30% of its annual profit after tax to shareholders as dividends.

Its chief executive officer and executive director Datuk Sharman Kristy Michael said the company aims to continue with its business expansion into the overseas market.

"I am extremely grateful to our long-term client Petroliam Nasional Bhd (Petronas) for being with us throughout the years since the beginning and (for) including us in their 'Petronas Road to Bursa' programme, allowing us to further grow the company.

"In the meantime, we will make good use of this opportunity given to us to enhance our market awareness and gain recognition so that we can cement our position in the hearts of Malaysians as one of the best in the industry, in order to bring better values to all our stakeholders," he said.

UOB Kay Hian Securities (M) Sdn Bhd is the approved adviser, placement agent and continued adviser of the listing exercise.