KUALA LUMPUR: Integrated marine bunkering services provider TMD Energy Ltd began trading on the NYSE American under the ticker symbol "TMDE”, becoming the first Malaysian marine bunker supplier to list on a major US exchange.
TMD Energy is Malaysia and Singapore-based and is a part of the Straits Energy Resources Bhd
, a Fortune Southeast Asia 500 company listed on Bursa Malaysia’s ACE Market.
TMD Energy said in a filing with Bursa Malaysia today that its share price opened at US$3.26 on its debut on Monday.
It rose to an all-time high of US$4.12 before closing at US$3.63, or 11.69 per cent higher than its initial public offering (IPO) price of US$3.25 per share.
"This gave the company a market capitalisation of US$83.85 million (RM367.2 million) on its first day as a publicly listed company," the filing said.
Total gross proceeds, excluding over-allotments, before deducting underwriting discounts and other related expenses, were US$10.08 million (RM44.13 million).
Proceeds from the IPO will be used for the purchase of cargo oil, defray listing expenses, working capital and other general corporate purposes.
It has given the underwriter a 45-day option to purchase up to an aggregate of 465,000 additional shares to cover over-allotments at the IPO price.
If the underwriter exercises its option, the total gross proceeds before deducting underwriting discounts and other related expenses are expected to be US$11.59 million.
"We are proud to become the first Malaysian marine bunker supplier to achieve a listing on a major US exchange, reinforcing our position as one of the industry’s leading players,” TMD Energy chairman Datuk Sri Ron Ho Kam Choy said.
Ho is also the executive director and chief executive officer.
"We are well-positioned for further expansion. We will leverage Malaysia’s strategic location along major shipping routes, including the Malacca Straits and the South China Sea, as well as the resilient demand for bunker fuel in the region and globally,” he said.
"Our listing on NYSE American will help enhance our international profile, expand our reach, capture new markets, and deliver sustainable, higher returns to shareholders," he added.
TMD Energy group operates in 19 ports across Malaysia. It has a fleet of 15 well-maintained bunkering vessels with capacities ranging from 540 deadweight tonnage (dwt) to 7,820 dwt, of which nine are double-bottom and double-hull vessels with an average cargo-carrying capacity of 4,200 dwt each. - Bernama
