Orkim inks underwriting agreement ahead of Main Market IPO


From left: RHB Investment Bank Bhd CEO Kevin Davies, Orkim Bhd chairman Datuk Abdul Hamid Sh Mohamed, Orkim executive director and CEO Cheah Sin Bi, CIMB Investment Bank Bhd head of equity capital markets & syndicate Maznee Kamaruddin and Affin Hwang Investment Bank Bhd chief operating officer Hishamuddin Hud Ibrahim.

KUALA LUMPUR: Orkim Bhd has signed a retail underwriting agreement with CIMB Investment Bank Bhd, RHB Investment Bank Bhd, and Affin Hwang Investment Bank Bhd for its initial public offering (IPO), ahead of its listing on the Main Market of Bursa Malaysia Securities Bhd before end of this year.

Orkim group, which is engaged in the ownership, chartering, and operation of vessels, said the IPO will comprise 400 million ordinary shares, consisting of an offer for sale of 300 million existing shares and a public issue of 100 million new shares.

 "Of the total, 372 million shares, or 37.2 per cent of the group’s enlarged issued share capital, will be offered through an institutional offering, of which 50 million shares will be allocated to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.

"Additionally, up to 322 million shares will be offered to Malaysian and foreign institutional and selected investors," it said In a statement today.

Meanwhile, the company said 28 million new shares, representing 2.8 per cent of the enlarged share capital, will be allocated under the retail portion, comprising 20 million shares for application by the Malaysian public via balloting and 8.0 million shares reserved for Orkim’s directors, eligible employees, and contributors to the group’s success.

Orkim executive director and chief executive officer Cheah Sin Bi said the signing of the retail underwriting agreement reflects the strong confidence of its partners in the company’s fundamentals and growth outlook.

"As we prepare for our listing, our focus remains on operational excellence, disciplined growth, and strengthening our position as a trusted name in Malaysia’s maritime and energy logistics sector," he said.

CIMB Investment Bank is the principal adviser, joint bookrunner, managing underwriter, and joint underwriter for this IPO exercise. RHB Investment Bank acts as the joint bookrunner and joint underwriter, while Affin Hwang Investment Bank is the joint underwriter. - Bernama

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