KUALA LUMPUR (May 21): Elsa Bhd has opened applications for its initial public offering (IPO) on the ACE Market to raise RM35.6 million for the oil-and-gas services firm and its shareholders.
The IPO, priced at 23 sen per share, will raise RM27.23 million from a public issue of new shares for the company and another RM8.37 million for three shareholders from an offer for sale of existing shares, according to its prospectus. Upon listing, Elsa will have a market capitalisation of about RM124 million.
Applications for the IPO will close on June 3, and Elsa is scheduled for listing on June 16.
Headquartered in Kuala Lumpur, Elsa operates asset-light, deploying specialised solutions for oilfield services, including geoscience, petroleum engineering, and production optimisation. The company also provides services covering human resources, digital infrastructure, and robotics.
As at mid-May, Elsa has 140 ongoing projects, with estimated remaining contract value of RM636 million and a remaining firm order value of RM265 million. The company is highly dependent on national oil-and-gas company PETRONAS, which accounted for nearly 40% of its revenue last year.
More than 60% of the IPO funds have been set aside to fund consultant-related expenses tied to Elsa’s oilfield and digital solutions portfolio, which includes existing and future projects.
The company is also allocating 16.2% of the proceeds towards expanding its robotics division while the remainder will be used for working capital and to defray listing-related expenses.
Elsa’s managing director Daniel Ilham Khong; its head of digital, robotics and engineering, and talent solutions department Chow Sheng Jon; and chairman Amiruddin Mohd Zain will pocket the proceeds from the offer for sale of their existing shares.
Malacca Securities is the principal adviser, sponsor, underwriter, and placement agent for the exercise.