KUALA LUMPUR: Keyfield International Bhd made its debut on the Main Market of Bursa Malaysia Securities today, opening at RM1.70 per share, representing a premium of 80 sen or 88.88% above its initial public offering (IPO) price issue of 90 sen.
The counter saw 18.66 million shares traded at the opening bell.
Keyfield’s share price closed at RM1.93, RM1.03 or 114.4% higher than the offer price. Volume amounted to 108.818 million shares.
The company raised RM188.1 million from the listing exercise, of which RM61.5 million (32.7%) will be used to redeem its cumulative redeemable non-convertible preference shares (CRNCPS), while RM65 million (34.6%) and RM35 million (18.6%) will be allocated to settle the balance purchase consideration for two vessels, Blooming Wisdom and Keyfield Helms 1 respectively. The CRNCPS were previously issued to acquire three vessels, namely Keyfield Compassion, Keyfield Commander and Keyfield Grace.
In addition, RM26.6 million (14.1%) has been earmarked to repay bank borrowings, for working capital and listing-related expenses.
The group and its subsidiaries are principally involved in the chartering of vessels, particularly accommodation work boats.
Group CEO and executive director Datuk Darren Kee reiterated that it is still bullish on this year’s outlook for the industry it operates in, driven by the expected surge in offshore activities, coupled with the limited supply of suitable vessels in the industry, which bodes well for local offshore accommodation vessel players.
“With our fleet of 11 Malaysian-flagged vessels and access to third-party vessels, Keyfield is well-positioned to support the local oil and gas industry,” he told reporters during a press conference after its listing ceremony.
“We are looking at acquiring three vessels, one of which (IMS Aman) has been acquired in January. So we're still looking at negotiating and considering the right vessels to acquire or to (order to build),” he said.
With regard to vessel shortages, Kee said that generally players will be able to negotiate for better rates for new contracts due to higher demand.
He shared that, to date, all of Keyfield’s vessels have been chartered out to clients. In order to fulfil new orders, the group will plan ahead in terms of vessel chartering to fully utilise its fleet, he said.
“Some of the vessels are (chartered) for four to six months, so we plan for jobs in the months of July or August. We are also continuously seeking (to work with) third-party vessels and also (sourcing) for overseas vessels where we try to convince them to charter to Malaysia,” he added.
Although he noted that generally a major escalation of war could affect the entire market, Kee said the group is not directly impacted by ongoing geopolitical tensions, particularly from the Middle East.
“For now all of our revenue is derived from Malaysia and some of it ... at the joint development area near Thailand. Currently, I do not see that it has any direct impact on us because we operate 100% within this region.
“In terms of direct work, there are no cancellation of work orders because all our clients such as Petronas or Shell, (operate) within this region ... in Sabah and Sarawak as well areas near to Thailand,” said Kee.
