KUALA LUMPUR (Oct 16): Marine transportation company Orkim Bhd, which has filed for an initial public offering (IPO) on Bursa Malaysia, has expanded its fleet with the delivery of its largest tanker to date.
The addition of Orkim Citrine, a 49,999-deadweight tonne (DWT) tanker, brings the Ekuiti Nasional Bhd (Ekuinas)-owned company’s fleet to 18 vessels, and boosts its total deadweight capacity by about 30%.
The vessel, designed to transport clean petroleum and chemical products, will commence its maiden charter voyage soon, Orkim said in a statement on Thursday.
Chief executive officer Captain Cheah Sin Bi said the latest addition underscores the group’s capacity to serve Malaysia’s growing marine transport needs while reinforcing its position as a market leader in the clean petroleum product (CPP) segment.
“Orkim Citrine, the second Malaysian-flagged Middle Range tanker, is a testament to Orkim's commitment in growing Malaysia’s available tonnage and contributing further to the nation's energy security,” Cheah said.
“Fleet expansion is a priority, we are expecting to add two newly-built CPP tankers to our fleet in 2027,” he added.
The fleet now comprises 14 CPP tankers, two medium-range CPP tankers, and two liquefied petroleum gas (LPG) tankers, with a combined capacity of 239,186 DWT.
The vessels operate under a mix of charter agreements transporting cargo for energy companies within Malaysia and neighbouring Asian countries, Orkim said.
The expansion comes ahead of Orkim’s planned Main Market listing, which aims to fund the acquisition of younger, larger and more versatile tankers.
The IPO comprises a public issue of 100 million new shares and an offer for sale of up to 300 million existing shares, representing 40% of its enlarged share capital.
Orkim, wholly owned by Ekuinas via Tetap Kuasa Sdn Bhd, reported a net profit of RM92.91 million on revenue of RM316.59 million for the financial year ended Dec 31, 2024, and targets a dividend payout ratio of 40% to 70%.
Proceeds from the IPO will mainly fund vessel acquisitions, including one of three planned purchases between 2025 and 2026.
CIMB Investment Bank is the principal adviser, joint bookrunner, and managing underwriter, while RHB Investment Bank is the joint bookrunner and joint underwriter.
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