KUALA Lumpur (Dec 4): PSP Energy Bhd (KL:PSP) closed lower on its maiden trading day on the ACE Market of Bursa Malaysia, after delivering a flat debut at the opening bell.
Shares of PSP initially opened unchanged at their initial public offering (IPO) price of 16 sen on Thursday, but began slipping almost immediately after the trading period started. It fell as much as 12.5%, or two sen, to 14 sen during intraday trading after moving within a tight range of 14.5 sen to 15.5 sen.
The counter closed at 14.5 sen, with 112.73 million shares exchanged. At that price, the group carried a market capitalisation of RM154.98 million.
“Our priority is to build a modern and scalable fleet that allows us to meet customers’ needs efficiently and reliably,” PSP Energy group managing director Ong Chee Seng said in a post-listing statement.
Shares of PSP Energy were oversubscribed a little under six times by retail investors during the IPO, to raise over RM46 million.
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 mainly diesel and marine gas oil to increase inventory levels.
PSP Energy will also allocate funds for seven new road tankers. The rest has been set aside as working capital and to defray listing expenses.
Executive director Rafidah Bahtiar pocketed close to RM12 million from selling his existing shares in the company as part of the IPO.
Mercury Securities is the principal adviser, sponsor, underwriter and placement agent, while AmInvestment Bank Bhd is a joint placement agent for the IPO exercise.