KUALA LUMPUR (Oct 23): Fuel and lubricant distributor PSP Energy Bhd has entered an agreement with Mercury Securities to underwrite its initial public offering (IPO) on the ACE Market.
The IPO, which will offer 27% of PSP Energy's enlarged share capital, is planned to be launched in December.
In a statement on Thursday, PSP Energy said the IPO exercise entails a public issue of 213.8 million new shares, representing 20% of the group’s enlarged share capital.
Existing shareholders will also offer 74.82 million existing shares for sale, representing 7% of its enlarged share capital.
PSP Energy's product range includes diesel, fuel oil, petrol, marine gas oil, and kerosene, as well as diesel engine oil, hydraulic oil, gear oil, marine lubricant, and grease.
Funds raised from the offering will go into acquiring a new bunker vessel to add to the company's existing fleet of three vessels in order to expand its bunkering business and service hub in the Tanjung Bruas Port, Melaka, in the first half of 2026.
Part of the proceeds will also be used for field products and new road tankers.
“These investments will reinforce our position as a trusted trader and distributor and support our long-term growth in Malaysia’s downstream oil and gas sector”, PSP Energy group managing director Ong Chee Seng said in a statement.
Under the public issue, 53.44 million new shares will be made available to the Malaysian public and 48.1 million new shares will be made available for eligible persons under pink form allocations.
Additionally, 58.8 million new shares will be allocated by private placement to Bumiputera investors and 53.4 million new shares for selected investors.
Post-listing, Ong’s stake through his private investment vehicle CS Hutchison Holdings Sdn Bhd will be diluted to 51% from 63.7%, while his direct stake in PSP Energy will also be diluted to 5% from 6.3%.
Mercury Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.