KUALA LUMPUR (Nov 4): Orkim Bhd, an oil and gas tanker operator, said it has inked a retail underwriting agreement ahead of its listing on the Main Market, which it expects before the end of this year.
The agreement was signed with CIMB Investment Bank Bhd, RHB Investment Bank Bhd and Affin Hwang Investment Bank Bhd, according to Orkim’s statement on Tuesday.
Orkim executive director Captain Cheah Sin Bi said the deal reflects the investment banks’ strong confidence in the company’s fundamentals and growth outlook.
“As we prepare for our listing, our focus remains on operational excellence, disciplined growth, and strengthening our position as a trusted name in Malaysia’s maritime and energy logistics sector,” he said.
The IPO comprises an offer for sale of up to 300 million existing shares and a public issue of 100 million new shares; the two blocks of shares represent 40% of Orkim’s enlarged issued share capital.
The IPO's selling shareholder is Tetap Kuasa Sdn Bhd, Ekuinas’ investment holding vehicle that currently owns 100% of Orkim.
Ekuinas, which is part of Permodalan Nasional Bhd, will own a 60% stake in Orkim after the listing exercise.
Proceeds from the public issue will go towards the group’s fleet expansion plans and funding working capital.
Its current fleet comprises 18 vessels with a total load capacity of 239,186 deadweight tonnes (DWT).
This includes 14 clean petroleum products (CPP) tankers with a combined capacity of 134,684 DWT, two medium-range CPP tankers (98,004 DWT) and two liquefied petroleum gas tankers (6,498 DWT).
For the financial year ended Dec 31, 2024 (FY2024), Orkim’s profit after tax (PAT) rose to RM92.91 million, from RM81.05 million in FY2023 and RM27.94 million in FY2022. This was despite revenue standing largely flat at RM316.59 million in FY2024, from RM302.58 million in FY2023 and RM315.58 million in FY2022.
This translates to sizeable gains in PAT margin to 29.3% in FY2024, from 26.8% in FY2023 and 8.9% in FY2022. In FY2024, the group logged a RM4.5 million one-off gain from the disposal of a CPP tanker. A RM32.3 million loss on disposal of four CPP tankers was recognised in FY2022.
Versus comparable peers, Orkim’s PAT margin was ahead of Coral Navigation Malaysia Sdn Bhd’s 25.8%, Maritime & General Bhd (19.5%), Adamas Marine Sdn Bhd (19.3%) and Uni-Fleet Sdn Bhd (7.4%), according to an independent assessment report conducted by Vital Factor Consulting Sdn Bhd, included in Orkim’s prospectus exposure.
It is to be noted that financial year-ends differ, and seasonality is not accounted for.
In FY2024, Orkim’s top five customers contributed 96.3% of its total revenue. The five are Petroliam Nasional Bhd, Petron Malaysia Refining & Marketing Bhd (KL:PETRONM), Boustead Petroleum Marketing Sdn Bhd and Japan-based Nippon Gas Line Co Ltd.
CIMB is also the principal adviser for the listing.