KUALA LUMPUR (April 22): Shares of TMD Energy Ltd, a 66.39% subsidiary of Straits Energy Resources Bhd (KL:STRAITS), rose by as much as 26.76% on its first day of trading on the New York Stock Exchange (NYSE) American.

TMD Energy opened at US$3.26 on Monday (April 21), and hit an intraday high of US$4.12, before it pared its gains to close at US$3.63, an 11.69% premium over the initial public offering (IPO) price of US$3.25 per share.

At the closing price, the Malaysia and Singapore-based integrated marine bunkering firm had a market capitalisation of US$83.85 million (RM367.2 million).

“We are proud to become the first Malaysian marine bunker supplier to achieve a listing on a major US exchange, reinforcing our position as one of the industry’s leading players,” TMD Energy chairman and chief executive officer Datuk Seri Ron Ho Kam Choy said in a statement.

“Our listing in NYSE American will help us to enhance our international profile, expand our reach, capture new markets, and deliver sustainable, higher returns to our shareholders,” Ho said.

The gross proceeds from the IPO amounted to US$10.08 million (RM44.13 million), excluding over-allotments. The underwriter has a 45-day option to purchase up to 465,000 additional shares, which could bring total gross proceeds to about US$11.59 million.

TMD Energy, which is also the first Malaysian company to list on the NYSE American, said that the proceeds from the IPO will be used to purchase cargo oil, listing-related expenses and working capital.

TMD Energy operates in 19 Malaysian ports and manages a fleet of 15 bunkering vessels, including nine double-hull ships. The company provides marine gas oil and marine fuel oil to vessels at sea, in addition to vessel chartering and management services.

TMD's customer base spans ship owners, logistics firms, shipping lines, and energy traders. In 2023, its subsidiary Tumpuan Development Sdn Bhd became the first Malaysian company in the sector to be certified as a biofuel supplier and trader under the International Sustainability and Carbon Certification (ISCC EU) scheme.

“TMD Energy’s growth strategy includes expanding its market presence across Southeast Asia, growing its bunkering fleet, providing ship management services to external customers and diversifying its fuel offering to include eco-friendly alternative fuels such as biodiesel,” it added.

At the time of writing on Tuesday, Strait Energy's shares traded unchanged at nine sen, valuing the group at RM89.5 million.