KUALA LUMPUR (July 1): Oil and gas services group Ocean Vantage Holdings Bhd (OVH) is seeking to raise RM21.37 million via its initial public offering (IPO) at 26 sen apiece to fund its business expansion.
OVH, which is listing on Bursa Malaysia’s ACE Market this July 22, is planning a public issue of 82.2 million shares, representing 20% of the group’s enlarged share capital of 411 million shares, according to its IPO prospectus that was released yesterday.
OVH is currently owned by managing director Kenny Ronald Ngalin (51%); executive directors Martin Philip King Ik Piau (39%) and Yau Kah Tak, who hold another 10% via indirect stake; as well as Mary King Siaw Nig (10%).
Kenny and Martin are also each offering for sale 20.55 million shares or 5% of the enlarged share capital via private placement.
Based in Sarawak, OVH is currently heavily involved in the upstream sector, although it is seeking to expand its footprint in the downstream sector where it has previously undertaken engineering, procurement and construction projects.
Kenny said that OVH is expanding its market presence in the downstream segment to further capitalise on the opportunities arising from development activities in the onshore areas along the Sarawak Corridor of Renewable Energy.
“At OVH, we have deliberately chosen to adopt an asset-light strategy from day one for its flexibility, agility and scalability, which is rather uncommon in an industry where it is usually capital-intensive.
“This strategy has also helped us manoeuvre through the oil price cycle,” said Kenny. “Our agile and adaptive business model has proven its resilience over the years as reflected in the growth of our operations and financial performance,” he added.
Of the RM21.37 million to be raised from the IPO, OVH will utilise RM3.2 million or 15.1% to expand its services to include underwater diving and advanced non-destructive testing and inspection services.
Another RM8.6 million (40.2%) will be used as capital expenditure, RM6.6 million (30.7%) for working capital, while the balance RM3 million is earmarked for listing expenses.
For its financial year ended Dec 31, 2019, OVH’s profit after tax rose 33.71% to RM6.91 million or 1.68 sen per share post IPO, from RM5.17 million or 1.26 sen per share.
Full-year revenue rose 91.15% to RM58.28 million from RM30.49 million.
From the IPO, 20.55 million shares representing some 5% of OVH’s enlarged share capital will be made available for the public. Applications for the public will close on July 9.
M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.