Tuesday 16 Jul 2024
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KUALA LUMPUR (April 27): Propel Global Bhd is confident that the new corporate structure and cash reserve resulting from a regularisation plan will support its expansion plan. 

The group, which is taking over the listing status of Daya Materials Bhd from Thursday (April 28), said it has seen its private placement representing 41% of its outstanding shares fully taken up by prominent investors and industry veterans.

As a result of the funding from the private placement, Propel Global said it has a healthy cash balance and minimal debt as the gearing ratio has been reduced to 0.6 times. 

“The group is actively exploring opportunities in the oil and gas (O&G) industry, especially in Sabah and Sarawak. High crude oil prices will encourage more investments into the industry, especially from oil majors,” said Propel Global CEO Angeline Lee. 

“The country’s borders reopening will spur business activities and therefore demand for oil and gas,” Lee said in a statement. 

She said Propel Global will continue to concentrate on expanding its existing well intervention and pipe recovery business by training its field engineers to deliver a wider range of downhole well technology solutions for the group’s clients.

“Over the mid-term, we are looking to venture into the wireline business, as this will make us more competitive in the plug and abandonment, as well as the ecommissioning programmes for both downstream and upstream facilities."

“We also see more opportunities opening up for the building technical services business, as foreign multinational companies investing in Malaysia set up their plants and facilities,” she said. 

Lee said the group also intends to leverage on the synergy from its construction and project management technical services, as well as heating, ventilation and air conditioning operation and maintenance services to grow the building technical services business. 

Propel Global will trade under the stock name “PGB” on the Main Market of Bursa Malaysia.

Edited ByS Kanagaraju
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