Stellar opening: (From left) Independent non-executive director of Steel Hawk Zariner Ismail, independent non-executive director Haslinda Hussein, executive director and CEO Salimi Khairuddin, Sharman, non-executive chairman Tan Sri Acryl Sani Abdullah Sani, independent non-executive director Tengku Saifan Rafhan Tengku Putra and CEO of UOB Kay Hian Securities (M) David Lim Meng Hoe.
KUALA LUMPUR: Oil and gas services and equipment provider, Steel Hawk Bhd
has successfully transferred its listing to the ACE Market of Bursa Malaysia from the LEAP Market.
Its share price closed its first trading day at a premium of 130% or 19.5 sen at 34.5 sen. Steel Hawk’s shares debuted at 30 sen, with a premium of 100% over the issue price, with an opening volume of 6.49 million shares.
“From the proceeds to be raised, we will construct a new fabrication yard in Kemaman, Terengganu or the Teluk Kalung Facility 2 which will allow us to reduce our reliance on subcontractors to carry out our fabrication work for us, leading to optimised turnaround time of our engineering, procurement, construction and commissioning (EPCC) services as well as additional cost savings,” deputy chairman and executive director Datuk Sharman K. Michael said in a statement.
“To capitalise on our existing technical knowledge and expertise, we aim to expand our EPCC and facilities improvement and maintenance services to the renewable energy industry, specifically on solar energy infrastructure and hydroelectric energy.
“Furthermore, we want to provide integrated hook-up and commissioning services to interconnect oil and gas infrastructure,” he added.
The initial public offering (IPO) was oversubscribed by 276.83 times, which it said was the highest of all IPOs in the past 10 years.
“We have bright prospects ahead for us underpinned by Petroliam Nasional Bhd’s annual domestic capital expenditure spending as part of its commitment to its long-term target of sustaining and growing Malaysia’s oil and gas production.
“Additionally, the recent discovery of potential hydrocarbon reserves in the Langkasuka Basin located on the west coast of Peninsular Malaysia presents further opportunities for future exploration and development,” he said.
“With this in mind, we will strive to leverage on our track record and competitive strengths to explore new business opportunities through our current and potential customers,” he added.
Steel Hawk previously said it would utilise RM7mil of the IPO proceeds to construct an additional fabrication yard in Kemaman, Terengganu, to expand its overall fabrication capacity five-fold to approximately 65 tonnes a month.
An additional RM2mil of the proceeds will be used to finance its working capital by purchasing raw materials such as piping, fittings and structures.
The group will also allocate RM1mil for the repayment of bank borrowings while the remaining RM3.5mil will be used to cover the transfer of listing expenses.
Steel Hawk’s revenue grew by 21.31% to RM39.03mil for the six-months or first half period ended June 30, from RM32.18mil in the same cumulative period last year.
It reported a first half net profit of RM6.23mil.
The company said its adjusted net profit for the first half, after excluding the one-off transfer of listing expenses has already surpassed the full year net profit of RM7.22mil recorded in the financial year 2023.
UOB Kay Hian Securities (M) Sdn Bhd was the principal adviser, sponsor, underwriter, and placement agent for the transfer of listing.
