KUALA LUMPUR (Nov 25): PSP Energy Bhd, a fuel and lubricant trader and distributor which is seeking to raise RM34.2 million in capital from the ACE Market, said its initial public offering (IPO) was oversubscribed by nearly six times.
PSP Energy said it received applications for 367.03 million shares for the 53.44 million shares offered to the public, according to its statement on Tuesday.
The Bumiputera public tranche was oversubscribed by 3.21 times, while the non-Bumiputera public portion saw an 8.52-fold oversubscription.
Shares allocated to eligible persons under pink form applications were also fully subscribed. Meanwhile, private placements involving both new and existing shares were completely taken up by selected investors.
PSP Energy is raising RM34.2 million from the IPO, priced at 16 sen per share. It is slated to make its debut on the ACE Market on Dec 4, 2025.
Of the proceeds, RM15 million has been earmarked for the purchase of a new bunker vessel at Tanjung Bruas Port in Melaka, while RM12 million will be used to purchase fuel stocks — mainly diesel and marine gas oil — to increase inventory levels.
The group will also allocate funds for seven new road tankers, working capital, and listing expenses.
PSP executive director Rafidah Bahtiar is concurrently selling RM11.97 million worth of PSP shares in the IPO.
Group managing director Ong Chee Seng said the capital raised from the IPO will support the group’s long-term growth strategy, particularly in enhancing its logistics infrastructure and bunkering capabilities.
“With an additional larger bunker vessel, higher inventory levels and a stronger logistics fleet, we can support and deliver higher volumes, improve turnaround times and enhance service reliability across the value chain,” Ong said in the same statement.
He added that the proceeds will enable the company to boost fuel product distribution through higher bunkering and road tanker capacity, while also reducing borrowings to finance larger fuel inventories.
Post-listing, Ong’s stake via his investment vehicle CS Hutchison Sdn Bhd will dilute to 51% from 63.7%, while his direct stake in PSP Energy will fall to 5% from 6.3% previously. Meanwhile, Rafidah's stake will be diluted to 17% from 30% previously.
Founded in 2010 in Pandamaran, PSP Energy operates across the downstream oil and gas value chain. The group owns two licensed storage facilities in Telok Gong, Port Klang, supported by a fleet of 42 road tankers and three bunker vessels.
Mercury Securities Sdn Bhd is acting as the principal adviser, sponsor, underwriter and joint placement agent for the IPO, with AmInvestment Bank Bhd serving as joint placement agent.
This article has been amended for accuracy.