KUALA LUMPUR (Nov 19): Orkim Bhd, an oil and gas shipping company owned by Ekuiti Nasional Bhd (Ekuinas), launched its Main Market initial public offering (IPO) on Wednesday, aiming for a RM920 million market value.
The IPO is priced at 92 sen per share and is expected to raise RM92 million for the company to expand its fleet of vessels.
Applications for the IPO will close on Nov 26, with the company scheduled for listing on Dec 9.
"Through every milestone, Orkim has remained steadfast in its commitment to being proudly Malaysian, flying the national flagacross regional waters, proving that a home-grown company can compete, deliver and lead on a global stage," Orkim chief executive officer Captain Cheah Sin Bi said in his speech at the launch ceremony of its prospectus.
WATCH: Ekuinas-backed Orkim prices Main Market IPO at 92 sen
The IPO consists of the issuance of 100 million new shares and an offer for sale of 300 million existing shares owned by Tetap Kuasa Sdn Bhd, the Ekuinas-owned investment holding vehicle. Following the listing exercise, Ekuinas, a subsidiary of Permodalan Nasional Bhd, will retain a 60% stake.
Of the bulk of the funds raised from the new share issuance, 87% or RM80 million will be used for new vessel acquisition, including chemical and petroleum product tankers with load capacities of 9,000 deadweight tonnes (DWT), as part of its fleet expansion and rejuvenation strategy.
The remainder will be used to support working capital needs (1.2%) and listing-related expenses (11.8%).
Orkim currently operates 18 vessels with a combined capacity of 239,186 DWT, comprising 14 clean petroleum product (CPP) tankers totalling 134,684 DWT, two medium-range CPP tankers (98,004 DWT), and two liquefied petroleum gas tankers (6,498 DWT).
CIMB Investment Bank is the IPO’s main adviser and lead underwriter, with RHB and Affin Hwang as joint underwriters. CIMB Investment Bank and RHB Investment Bank are joint bookrunners.