Listing proceeds boost capacity to capture rising offshore service demand
KUCHING: Sarawak-based oil and gas (O&G) services firm United Asiapac Energy raised RM47.83 million from its ACE Market initial public offering (IPO) to expand its equipment fleet and specialist workforce as it positions itself for growing demand from Malaysia’s ageing offshore wells.
Nearly half, or 47.74 per cent, of the proceeds will be used to purchase well intervention tools and equipment.
Managing director Ahmad Fadzuli Ali said demand for well integrity, fishing and plug-and-abandonment (P&A) services is expected to increase as offshore wells mature.
“As Malaysia’s offshore wells continue to mature, demand for well integrity, fishing and plug-and-abandonment (P&A) work continues to grow, as driven by safety and regulatory requirements rather than oil price cycles,” he said.
The Malaysian well intervention solutions provider debuted on the ACE Market of Bursa Malaysia Securities Bhd on Sept 14 at 35 sen per share.
A total of 2,376,500 shares were traded at the opening bell under the stock name UNIPAC and stock code 0468.
Based on its enlarged issued share capital of 550 million shares and IPO price of 35 sen, the company has a market capitalisation of about RM192.5 million.
Its IPO was oversubscribed by more than 21 times.
Apart from the purchase of well intervention equipment, 11.29 per cent of the proceeds will finance the acquisition of a new corporate office and 10.83 per cent will be used to expand its workforce.
Another 5.83 per cent has been earmarked for the repayment of bank borrowings, while 4.93 per cent will be used to recruit engineers to support the introduction of new well intervention solutions.
The balance will go towards working capital and IPO-related expenses.
United Asiapac Energy provides specialised well intervention solutions across different stages of a hydrocarbon well’s lifecycle, from exploration and drilling to production, mature-field operations and P&A.
Its main services include fishing, P&A and sidetracking.
Fishing involves recovering or removing stuck, lost or failed downhole equipment and debris that may disrupt drilling or production.
P&A permanently seals wells that have reached the end of their productive life in accordance with operational, safety and environmental requirements, while sidetracking enables operators to reach new production zones or bypass damaged sections of existing wells.
The company has completed more than 200 projects since 2021 and operates bases in Kemaman and Labuan.
Ahmad Fadzuli said the two bases give the company an advantage in mobilising its services compared with internationally based competitors.
“Our company has operational bases in Kemaman and Labuan, giving us a mobilisation edge our internationally based competitors cannot match,” he said.
TA Securities Holdings Bhd was the principal adviser, sponsor, underwriter and placement agent for the IPO.
