WECT EYES US$100M IPO ON NYSE
Company looking to raise funds for expansion of bunkering services at Lumut Port, among others
WECONNECT Tech International Inc (WECT) is planning an initial public offering (IPO) on the New York Stock Exchange (NYSE) to raise US$100 million (RM418 million) for expansion into the oil and gas (O&G) sector.
Founder and director Datuk Brian Wee said the IPO would be launched some time next year or 2021.
“When you are looking at NYSE, it is because you want to raise a big amount. We have signed four agreements to provide bunkering services at Lumut Port in Perak for cargo ships traversing the Straits of Malacca. The aim is to provide bunkering
services in foreign waters,” he said.
Wee was speaking after witnessing the signing of a memoranda of understanding (MoU) between WECT’s 60 per centowned unit, GF Offshore Sdn Bhd, with port partner Lumut Maritime Terminal Sdn Bhd, storage partner KL Bunkering (M) Sdn Bhd and collateral management partner PM Access World (Malaysia) Sdn Bhd.
Early this month, GF had signed an MoU with its logistics partner, Straits Inter Logistics Bhd.
GF will provide bunkering services for cargo or container ships.
“We have two major clients now, namely Tenaga Nasional Bhd and Vale. With Vale, we have a contract worth US$2.5 million for 6,800 tonnes (of ship fuel). We are talking to all existing operators in Lumut Port and also to Petronas (Petroliam Nasional Bhd) chain suppliers for more contracts,” said Wee.
GF chief executive officer Datuk Seri Mahendran Chelladorai said the company was targeting to hit 70,000 tonnes (of ship fuel) by end-August.
He said as the only bunkering operator at Lumut Port, the company had the first-mover advantage in a strategic base located at the centre of the Straits of Malacca, the second-busiest waterway in the world that sees more than 84,000 vessels using the route per year.
“To realise our transformational roadmap, accelerating our expansion and creating value for our shareholders, we have anchored GF’s growth trajectory with two blue-chip companies. We will also be servicing vessels from other local and international corporations at Lumut Port.
“We want to capture market share of vessels traversing the Straits of Malacca by promoting Lumut Port as a cheaper and time-saving alternative to Singapore,” said Mahendran. He said the company’s aim was to trade a conservative 1.2 million tonnes of fuel per year and to double the volume within the next two years.
“Once we have hit 70,000 tonnes, we will establish the first Floating Storage and Offloading (FSO) operations with up to 100,000 tonnes capacity at Lumut Port in anticipation of an expected high-volume demand,” said Mahendran.
GF chief financial officer Loke Chow Wing said there was a big business opportunity and untapped potential at Lumut Port.
“Singapore is doing 50 million tonnes a year of bunkering. If we can do five per cent of that amount, it is already 2.5 million.
“When vessels come to Lumut Port instead of Singapore for bunkering before they head to China and so on, they can save four days of travel and around US$160,000. These are among the many benefits that we can give O&G players,” he said.