KUALA LUMPUR (April 9): PSP Energy Bhd, which is principally involved in the trading and distribution of fuel and lubricant products in Malaysia, is seeking to list on the ACE Market to raise funds to purchase a bunker vessel to further expand its ship-to-ship bunkering business.  

The company filed its initial public offering (IPO) draft prospectus with Bursa Malaysia on Wednesday.

The IPO will involve a public issue of 213.80 million new ordinary shares, with an offer for sale of 74.82 million shares by way of private placement to selected investors approved by Ministry of Investment, Trade and Industry (Miti).

In a bourse filing, the group said it intends to purchase a bunker vessel to further expand its ship-to-ship bunkering business, as it will lead to higher sales volume of fuel products, allowing the group to serve more customers.  

As such, a portion of the IPO proceeds have been allocated for the purchase of a bunker vessel. The IPO price has not been disclosed.  

In the event the actual purchase price is lower than the allocated proceeds, the surplus will be utilised for the purchase of fuel products purposes.  

As part of its long-term strategic growth plan, a portion of the IPO proceeds, which have also not been disclosed, have been allocated for the purchase of fuel products, mainly diesel and marine gas oil, to further increase sales volume of these products.  

Under the proposed public issue, the company will set aside 53.44 million shares for the Malaysian public and 48.10 million shares for eligible persons. Meanwhile, 53.44 million shares will be allocated to selected investors and 58.82 million shares made available by way of private placement to selected Bumiputera investors approved by Miti.

Mercury Securities Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO.