CEO Cheah Sin Bi said the group intends to acquire two more newbuilds next year.
PETALING JAYA: Orkim Bhd
, which is seeking to raise RM92mil from its Main Market listing, plans to channel 87% of the proceeds, or RM80mil, towards acquiring two new chemical/petroleum product tankers as part of its fleet expansion and modernisation programme.
The clean petroleum product (CPP) tanker operator currently manages 18 vessels, with two more under construction for delivery in 2027.
Earlier this year, Orkim took delivery of the Orkim Citrine, a 49,999-deadweight-tonne vessel that is now serving Petroliam Nasional Bhd and PT Pertamina.
Executive director and chief executive officer Cheah Sin Bi said the group intends to acquire another two newbuilds next year, funded by a mix of initial public offering (IPO) proceeds, internal funds and sukuk financing.
According to its prospectus, the vessels are estimated to cost RM80mil each.
Cheah said the CPP tanker market has been “booming”, with charter rates rising more than 10% above the 10-year average, while oil price fluctuations have limited impact on the business.
“We bridge between the refinery and the consumer. Hence, our business is tied very closely to national gross domestic product, especially in South-East Asia – one of the fastest-growing regions,” he told a press conference held in conjunction with the group’s prospectus launch yesterday.
Chairman Datuk Abdul Hamid Sh Mohamed echoed this, noting that demand for CPP and liquefied petroleum gas (LPG) shipping is driven primarily by consumer usage and regional economic growth.
“We are less susceptible to oil price swings and less exposed to the capital expenditure cycles of oil majors.
“We transport end products – CPP and LPG – from refineries nationwide and across the region for final consumption.”
As part of the IPO exercise, Orkim declared an interim dividend of two sen per share, totalling RM20mil, payable in January, with new IPO investors also entitled to the payout.
Abdul Hamid described it as an “incentive” for the new shareholders coming in.
Chief financial officer Tahirah Mohd Nor said Orkim’s time charter order book totals RM650mil, with firm contracts and extensions running up to 2032, providing strong earnings visibility.
She added that voyage charters, which cannot be booked as order book, contributed 54% of 2024 revenue, with extensions running up to 2035.
Orkim has launched its IPO at 92 sen a share, aiming to raise RM92mil from the public portion of its listing scheduled for Dec 9, 2025, giving the company an estimated market capitalisation of RM920mil.
The listing also marks the exit of Ekuiti Nasional Bhd, which will divest its entire stake through a 33.3% offer-for-sale, representing 30% of the enlarged share capital, for RM276mil. The remaining 66.7% will be transferred to Permodalan Nasional Bhd (PNB) and its unit trust funds.
A new public issuance of 100 million shares under the IPO will subsequently reduce PNB Group’s holding to 60%, assuming no over-allotment.
Of the RM92mil raised, RM80mil will be used to buy two new 9,000-deadweight-tonne tankers within 24 months of listing. Another RM1.15mil, or 1.2%, has been earmarked for working capital, while RM10.85mil, or 11.8%, will go towards listing expenses.
Fleet utilisation stood at 91.6% in the first half ended June 30, 2025, and 92% in the financial year ended Dec 31, 2024.
According to an independent market research report, Orkim commands 56% of Malaysia’s domestic CPP tanker market, based on 27 Malaysian-registered tankers in 2024.
