KUALA LUMPUR: Integrated oil and gas services and equipment (OGSE) solutions provider, Elsa Bhd has signed an underwriting agreement with Malacca Securities Sdn Bhd in conjunction with its proposed initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
Its executive chairman, Amiruddin Mohd Zain, said the signing of the underwriting agreement marks a key milestone in the company’s corporate journey, officially moving it into the execution phase of its proposed listing on the ACE Market.
"With this milestone secured alongside Malacca Securities, we will continue to focus on executing our growth plans in a disciplined manner as we prepare for the upcoming prospectus launch and subsequent stages of the listing process,” he said in a statement.
Under the proposed structure, Elsa’s IPO entails a public issue of 118.4 million new ordinary shares, representing about 21.99 per cent of its enlarged issued share capital, and an offer for sale of 36.4 million existing shares, representing about 6.76 per cent of the enlarged share capital.
Of the public issue, 26.92 million shares will be made available for application by the Malaysian public, 10.76 million shares has been allocated to eligible persons, and 80.712 million shares will be offered via private placement to selected investors.
Upon completion of the IPO, Elsa’s enlarged issued share capital is expected to increase to 538.4 million shares.
Under the underwriting agreement, Malacca Securities will underwrite the 37.68 million new shares available to the Malaysian public and eligible persons and will act as the principal adviser, sponsor, underwriter, and placement agent for the listing exercise.
The Elsa group currently serves a strong portfolio of clients within the Petronas ecosystem, as well as international and independent oil and gas operators in Malaysia.
"The proposed listing is expected to unlock the strategic capital required to support Elsa’s continued growth trajectory, specifically strengthening its technical workforce, expanding its robotics and asset inspection capabilities, and providing the working capital headroom necessary to execute its expanding pipeline of projects,” it added. - Bernama
