KUALA LUMPUR (Nov 11): PSP Energy Bhd, a fuel and lubricant trader and distributor, is expecting to raise RM34.2 million from its listing on the ACE Market.
The initial public offering (IPO) was priced at 16 sen apiece, according to its prospectus unveiled on Tuesday. At its IPO price, the company is expected to have a market value of RM171 million at listing.
Applications for the IPO will close on Nov 21, with the company scheduled for listing on Dec 4.
PSP Energy plans to use its IPO proceeds to expand its operations. RM15 million will go towards buying a new bunker vessel to strengthen its fleet and bunkering hub at Tanjung Bruas Port, Melaka, set for completion in the first half of 2026.
RM12 million will be used to purchase fuel products, mainly diesel and marine gas oil, to boost inventory. The rest will cover seven new road tankers (2.9%), working capital (3.8%), and listing expenses (14.3%).
Managing director Ong Chee Seng said the IPO funds will help drive the company’s growth over time.
The energy firm got its start in 2010 in Pandamaran, and is principally involved in the downstream value chain of the oil and gas industry.
Under the public issue, 53.44 million new shares will be offered to the Malaysian public, while 48.1 million shares will be reserved for eligible persons under pink form allocations.
In addition, 58.8 million shares will be placed out to Bumiputera investors via private placement, and 53.4 million shares will be offered to selected investors.
Post-listing, Ong’s shareholding via 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 decrease to 5% from 6.3%.
Mercury Securities is the principal adviser, sponsor, underwriter and placement agent, while AmInvestment Bank Bhd is a joint placement agent for the IPO exercise.