PublicInvest sees growth in Keyfield post listing

KUALA LUMPUR: Keyfield International Bhd is poised to see growth with its initial public offering (IPO), driven by its fleet expansion, greater service offerings and continuous enhancement of its vessels’ capabilities.

Public Investment Bank Bhd (PublicInvest) said Keyfield aimed to strengthen its market position by expanding its fleet.

Keyfield plans to broaden its service offerings to Petroliam Nasional Bhd’s (Petronas) unit Petronas Carigali Sdn Bhd and petroleum arrangement contractors (PACs), while enhancing its vessels’ capabilities to align with industry trends and sustainability goals.

“We derive a fair value of RM2.09 based on a 15 times price-to-earnings multiple to its financial year 2024 earnings per share forecast of 13.9 sen.

“The IPO is expected to raise RM188.1 million from the issuance of 209 million new shares.

“A total of 53.2 and 32.7 per cent of the proceeds are meant for settlement of balance purchase consideration for a barge and a platform supply vessel, as well as redemption of preference share, respectively,” it said.

Keyfield’s competitive strengths include Petronas licensed, Malaysian-owned and flagged vessels operator with letter of awards for umbrella contracts, specialisation in offshore accommodation and in possession of a fleet of vessels with different

Its growth is susceptible to inherent risks of the upstream oil and gas (O&G) industry, competition and dependency on the Petronas licence and the umbrella contract with Petronas Carigali, as well as dependency on the latter.

Without the umbrella contract, PublicInvest said Keyfield’s revenue generation from Petronas Carigali would come to a halt.

Lacking the Petronas licence would preclude Keyfield from being invited to bid for projects by O&G contractors and from becoming a panel contractor with Petronas Carigali and PACs, thus eliminating revenue streams from these sources.

“The loss of Petronas Carigali will have an material adverse impact on Keyfield’s business, financial condition, operations and prospects if it is not able to secure replacement chartering contracts from other customers to cushion such impact in the respective year.”

Keyfield is set to debut on Bursa Malaysia’s Main Market on April 22.

The IPO is expected to raise RM188.1 million from the issuance of 209 million new shares. PUBLIC INVESTMENT BANK BHD