From left: Standly Ho, Director of PSP Lubricants (M) Sdn Bhd; Yip Kah Weng, Associate Director – Corporate Finance of Mercury Securities; Chew Sing Guan, Managing Director; Ong Chee Seng, Group Managing Director of PSP Energy; Leong Cheng Yuen, Head of Equity Capital Markets of AmInvestment Bank; Naresh Jaganathan, Director of PSP Lubricants; and Soon Thian Fong, Director of PSP Marine (M) Sdn Bhd
KUALA LUMPUR: Integrated fuel and lubricant trader and distributor PSP Energy Bhd
aims to raise RM34.2mil from an intiail public offering (IPO) en route to its listing on the ACE Market of Bursa Malaysia.
In a statement, the company said it plans to allocate RM15mil (43.9%) of the proceeds to the purchase of a bunker vessel to expand its bunkering business.
Ong Chee Seng, group managing director of PSP Energy, said the acquisition of a completed bunker vessel would enable the Company to achieve faster operational readiness.
“We intend to further strengthen this segment through the acquisition of an additional bunker vessel, which will increase our bunkering capacity. Our ship-to-ship bunkering operations are currently supported by three vessels, and we plan to acquire an additional bunker vessel with a larger carrying capacity of at least 2.0 megalitres,” he said.
According to Ong, revenue from the company’s bunkering business has increased at a compounded annual growth rate of 11.7% over three years - from RM106.1mil in the financial year ended June 30, 2022, to RM147.8mil in the financial year ended June 30, 2025.
Meanwhile, an additional RM12mil (35.1%) of the IPO proceeds will be allocated for purchases of fuel products mainly diesel and marine gas oil, to increase the sales volume.
Ong said this will boost sales capacity and enable the company to serve a wider customer base. "It will also facilitate the prompt deployment of the additional bunker vessel and the commercialisation of our upcoming port-based bunkering service hub at the Tanjung Bruas Port, Melaka, allowing us to inject the acquired fuel products into these assets for onward sales,” he added.
A further RM1mil (2.9%) will be used to purchase seven new road tankers to replace older units and expand the Company’s tanker fleet, while the balance of the proceeds will be allocated towards general working capital amounting to RM1.3mil (3.8%) and to defray the estimated listing expenses of RM4.9mil (14.3%).
Under the IPO exercise, PSP Energy will issue 213.8 million new ordinary shares and offer for sale 74.82 million existing ordinary shares, representing 20% and 7% respectively, of the group’s enlarged issued share capital of 1.07 billion ordinary shares upon listing.
Of the 213.8 million new shares, 53.44 million will be made available to the Malaysian public via balloting, while 48.1 million shares will be allocated to eligible directors, employees and persons who have contributed to the success of the PSP Group under the Pink Form allocation.
A further 53.44 million shares will be placed out to selected investors via private placement, while the remaining 58.82 million shares will be reserved for private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti).
PSPS energy will have a market capitalisation of RM171mil upon listing, based on an IPO price of 16 sen a share.
PSP Energy’s listing on the ACE Market is tentatively scheduled for Dec 4, 2025.
Mercury Securities Sdn Bhd is the principal adviser, sponsor, underwriter and joint placement agent, while AmInvestment Bank Bhd is a joint placement agent for the IPO exercise.
