Ocean Vantage to raise RM21.4m from IPO

KUALA LUMPUR: Ocean Vantage Holdings Bhd, a Sarawak-based oil and gas (O&G) integrated support services provider, will be raising RM21.4 million from its initial public offering (IPO).

Of the expected total proceeds, RM3.2 million, or 15.1 per cent, will be used to broaden its range of support services for the upstream O&G industry to include underwater diving services as well as advance non-destructive testing and inspection services.

Another RM8.6 million, or 40.2 per cent, will be used as capital expenditure to strengthen its project management capabilities in the downstream O&G segment, while RM6.6 million, or 30.7 per cent, is for working capital.

The balance RM3 million, or 14 per cent, has been earmarked for listing expenses.

Managing director Kenny Ronald Ngalin said with the world transitioning to a “new normal”, Ocean Vantage would be doing things differently.

“We are excited to be yet another step closer to being a listed entity. Besides elevating our status to the next level, proceeds from the listing will help fund our expansion plans.

“We are charting our way forward, steadfastly focused on our longer-term objectives and strategic directions, notwithstanding the current challenging operating landscape,” he said in a statement after launching its fully-digital listing prospectus yesterday.

Ocean Vantage is scheduled to be listed on Bursa Malaysia’s ACE Market on July 22.

Its IPO entails a public issue of 82.2 million new shares, representing 20 per cent of its enlarged share capital, together with an offer for sale of 41.1 million existing shares.

A total of 20.6 million new shares are available for the public while 4.1 million new shares are for eligible directors, employees and persons who have contributed to the company's success.

About 57.5 million new shares will be offered to identified investors via a private placement.

The 41.1 million existing shares will be offered by way of private placement to identified investors.

Upon listing, Ocean Vantage will have a market capitalisation of RM106.9 million based on the issue price of 26 sen and enlarged share capital of 411 million shares.

Kenny said the O&G industry’s outlook remained promising for outsourced support services providers such as Ocean Vantage as major industry players were increasingly consolidating their operations and workforce, preferring to outsource functions to external service providers.