Kuala lumpur: Oil and gas services firm United Asiapac Energy Bhd has launched its initial public offering (IPO) at an issue price of 35 sen per share, with its listing on the ACE Market of Bursa Malaysia Securities Bhd scheduled for August 19.

According to BERNAMA News Agency, the well intervention solutions provider, in its prospectus unveiled today, said the IPO comprises a public issue of 139.22 million new ordinary shares, of which 27.5 million shares are made available to the Malaysian public. A total of 10 million shares are allocated to eligible directors, employees, and persons who have contributed to the success of the company and its subsidiaries, while the remaining 101.72 million new shares are earmarked for selected investors via private placement, it said.

In a statement, United Asiapac Energy stated that it aims to raise gross proceeds of RM48.73 million from the IPO, giving the company an expected market capitalization of about RM192.5 million upon listing. "The proceeds to be raised from the IPO will enable the company to fund its business expansion and support its next phase of growth," the company mentioned.

The company has earmarked 47.74 percent of the proceeds to finance the purchase of well intervention tools and equipment, 11.29 percent for the acquisition of a new corporate office, and 10.83 percent for workforce expansion. Another 5.83 percent is allocated for the repayment of bank borrowings, while 4.93 percent is set aside for the recruitment of engineers to support the introduction of new well intervention solutions. The remaining proceeds will be utilized for working capital and IPO-related expenses.

Managing director Ahmad Fadzuli Ali commented that the IPO prospectus launch marks an important milestone for the company as it prepares for its listing on Bursa Malaysia. "We believe our post-IPO plans reflect our long-term commitment to continuously enhancing our capabilities, strengthening our competitive position, and delivering greater value to our clients," he said.

The application period opens at 10 am today and closes at 5 pm on August 5. TA Securities is the principal adviser, sponsor, underwriter, and placement agent for the IPO.