KUALA LUMPUR (Aug 16): Oil and gas (O&G) support services firm Steel Hawk Bhd on Friday launched its initial public offering (IPO) that would raise up to RM20.21 million as part of its listing transfer to the ACE Market.
The IPO is priced at 15 sen per share, according to its prospectus. Steel Hawk is also seeking fresh funds to mainly finance the construction of its second facility in Teluk Kalung as the company has already exhausted the RM3.2 million raised from its LEAP Market listing in October 2021.
Application for the IPO has begun and will close on Aug 23 and listing has been scheduled for Sept 5.
“It will provide us access to a wider fundraising platform to support our expansion plans and serve to further accelerate our long-term growth initiatives,” said deputy chairman and executive director of Steel Hawk Datuk Sharman K Michael.
Steel Hawk mainly services the O&G industry both onshore and offshore, providing engineering, procurement, construction, and commissioning for chemical injection skids and facilities improvement as well as maintenance of topside facilities.
The company also sells, installs and maintains oilfield equipment.
Under the public issue that will raise up to RM13.5 million, the company is offering 24.5 million shares to the Malaysian public, 12.25 million to eligible persons, and 53.25 million shares to select investors through private placement.
More than 51% of the proceeds from the public issue will go towards the construction of the proposed Teluk Kalung Facility 2. The company will also set aside 15% as working capital and 7.4% for repayment of bank borrowings. The rest will be used to defray listing expenses.
The offer for sale, meanwhile, will raise RM6.7 million through private placement to select investors and the proceeds will accrue entirely to shareholders Sharman as well as Radiant Capital Sdn Bhd, held by Steel Hawk chief executive officer Salimi Khairuddin and chief operating officer Khairul Nazri Kamarudin.
UOB Kay Hian is the principal adviser, sponsor, underwriter and placement agent for the IPO.