KUALA LUMPUR (Sept 14): United Asiapac Energy Bhd (KL:UNIPAC) ended its first trading day on the ACE Market 11.4% lower than its opening price on Monday.
The counter opened at its initial public offering price of 35 sen and dipped soon after. It hit an intraday low of 29.5 sen before closing at 31 sen with about 40.8 million shares changing hands.
United Asiapac Energy delayed its listing by about a month than the originally planned Aug 19 after it announced it would issue a supplementary prospectus with clarifications and details on a new contract secured by the group.
The company had said the revised timeline did not change its long-term strategy or growth plans.
The delay came despite retail demand for the offering was oversubscribed by 21.02 times.
At its closing price, the group's market capitalisation stood at RM170.5 million.
"We recognise and will adhere to the responsibilities that come with being a public-listed company, and we remain steadfast in our commitment to the highest standards of governance, transparency and accountability as we strive to deliver sustainable value for all our shareholders and stakeholders," said managing director Ahmad Fadzuli Ali in his speech at the listing ceremony.
United Asiapac specialises in fishing services — the retrieval of equipment stuck in oil wells — as well as plug and abandonment (P&A), sidetracking and other upstream support services. It operates mainly out of Kemaman in Terengganu and Labuan.
The IPO comprised a public issue of 139.22 million new shares, with no offer-for-sale component, meaning existing shareholders did not cash out any of their stake.
The group raised over RM48.73 million from the exercise, with almost half of the proceeds to 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.
TA Securities was the principal adviser, sponsor, underwriter and placement agent for the IPO.
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