PETALING JAYA: Upstream oil & gas (O&G) well-related services provider Reservoir Link Energy Bhd made its debut on the ACE Market of Bursa Malaysia Securities today, closing at 51.5 sen, a 26% or 10.5 sen premium from its initial public offering (IPO) price of 41 sen with 189.27 million shares traded.
Reservoir Link is the first O&G company to be listed after the movement control order period. Its share price opened at 65 sen, representing a 58.5% premium.
The public issue raised RM23.42 million, of which RM10 million is for the purchase of well testing equipment, RM5 million for the repayment of bank borrowings, RM4.92 million for working capital and the remaining RM3.5 million for listing expenses.
Speaking at the listing ceremony, Reservoir Link CEO and managing director Datuk Wan Hassan Mohd Jamil said the IPO will greatly improve Reservoir Link’s position in the market.
“We are committed to further enhance our current business and improve our competitiveness by purchasing our own well testing equipment, which will significantly boost our capabilities to better serve our clients as well as improve Reservoir Link’s margins. Subsequently, we intend to expand beyond our current market reach and secure more jobs with our untiring perseverance and strong dedication.
“The oil price’s gradual improvement augurs well for us. We will position ourselves to be more competitive and ready to bid for more contracts in the future. We remain focused on delivering quality services and value to our shareholders and stakeholders alike and adapt accordingly to the O&G industry’s competitive landscape,” Wan Hassan said.
Kenanga Investment Bank Bhd was the principal adviser, sponsor, sole underwriter and placement agent for Reservoir Link’s listing exercise.
Reservoir Link is the first O&G company to be listed after the movement control order period.
