PSP Energy aims for RM34mil IPO


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

PETALING JAYA: Integrated fuel and lubricant trader and distributor PSP Energy Bhd aims to raise RM34.2mil from an initial public offering (IPO) en route to its listing on the ACE Market of Bursa Malaysia.

In a statement, the company said it planned 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 would 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 pointed out.

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