KUALA LUMPUR (July 1): Oil and gas (O&G) support services provider Steel Hawk Bhd (KL:SKHAWK) has inked an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd for the transfer of its listing from Bursa Malaysia’s LEAP Market to the ACE Market.
In a statement, the company said the initial public offering (IPO) exercise entails a public issuance of 90 million new shares, representing 18.37% of the company’s enlarged share capital of 490 million, and an offer for sale of 44.7 million existing shares to selected investors by way of private placement, which represents 9.12% of the company’s enlarged share capital.
Of the 90 million new shares, 24.5 million shares will be open for application to the Malaysian public, 53.25 million shares allocated to selected investors by way of private placement, while 12.25 million shares will be made available to eligible employees and persons who have contributed to the success of the group (pink form shares).
Pursuant to the underwriting agreement, UOB Kay Hian — which is the principal adviser, sponsor, underwriter and placement agent — will underwrite 36.75 million new shares made available for pink form shares and the Malaysian public.
The transfer of listing is expected to be completed by the third quarter of this year.
Steel Hawk, through its subsidiaries, is principally involved in the provision of onshore and offshore support services for the oil and gas industry with operations based in Kemaman, Terengganu and Miri, Sarawak.
The group provides support services for oil and gas facilities, both onshore and offshore including engineering, procurement, construction and commissioning services for chemical injection skids installed on exploration and production facilities such as platforms, rigs and terminals. It also provides facilities improvement and maintenance services that focus on the overall improvement and maintenance of rigs.
Steel Hawk deputy chairman and executive director Datuk Sharman K Michael said the transfer of listing will strengthen the group’s position to capitalise on the exciting opportunities emerging in the global O&G industry.
“The ACE Market's broader investor base will increase liquidity for our shares, elevate our company profile and attract new partners. Furthermore, this transition provides us with a significantly larger fundraising platform; giving us access to additional capital that will support our expansion plans, allowing us to invest in strategic initiatives,” he said.
Additionally, the prospects for Malaysia's O&G sector remain favourable due to elevated global oil prices, creating a positive outlook for local producers. Additionally, Petroliam Nasional Berhad's renewed focus on exploration and production activities suggests a period of potential expansion for the industry, he said.
“This highlights the continued need for reliable and efficient services in the sector, which is where companies like ours can make a significant contribution by leveraging our expertise in providing services and equipment,” he added.
Apart from Steel Hawk, ICT Zone Asia Bhd (KL: ICTZONE) is also transitioning from the LEAP Market to the ACE Market, having received shareholders’ approval two weeks ago. So far, only two companies, Cosmos Technology International Bhd (KL:COSMOS) and TT Vision Holdings Bhd (KL:TTVHB) have successfully moved from the LEAP Market to the ACE Market.