KUALA LUMPUR (July 28): United Asiapac Energy Bhd priced its initial public offering (IPO) at 35 sen per share as the oil and gas services firm seeks to raise RM48.73 million for expansion.
The proposed IPO on the ACE Market involves only the public issue of new shares, according to its prospectus launched on Tuesday. There is no accompanying offer-for-sale component, meaning that existing shareholders are not cashing out their stake in the company.
Applications for the IPO will close on Aug 5, and listing has been scheduled for Aug 19.
United Asiapac specialises in fishing services — retrieving equipment stuck in wells — and also provides plug and abandonment, sidetracking, and other upstream support services. The company mainly operates out of Kemaman in Terengganu and Labuan.
At the IPO price, United Asiapac will have a market capitalisation of RM192.5 million upon listing and values the company at nearly 28 times its trailing earnings.
Almost half of the IPO proceeds, or RM23.26 million, will be used to acquire well intervention tools and equipment within 36 months of listing.
The company is also setting aside RM5.5 million to acquire a new corporate office, RM5.28 million to expand its workforce and RM4.54 million for working capital. United Asiapac also plans to spend RM2.4 million to recruit engineers and RM2.84 million to repay bank borrowings.
The rest will cover listing expenses.
United Asiapac has about RM27.3 million worth of outstanding purchase orders for projects to be completed by February 2027. In 2025, the company made a net profit of RM6.98 million on revenue of RM36.95 million.
TA Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.