ACE Market-bound Reservoir Link to raise RM23m at 41 sen a share

The Edge Markets, By Adam Aziz – 25 June 2020

KUALA LUMPUR (June 25): Reservoir Link Energy Bhd, en route to list on the ACE Market of Bursa Malaysia on July 15, is seeking to raise RM23.42 million from its initial public offering (IPO) to expand its oil and gas well services business.

According to Reservoir Link’s prospectus, which was filed with Bursa today, the IPO involves a public issue of 57.13 million new shares and an offer for sale of 31 million shares.

At 41 sen per share, Reservoir Link has a market capitalisation of RM116.85 million based on an enlarged share base of 285 million shares, according to the company.

It plans to use the RM23.42 million gross proceeds from the public issue to purchase well-testing equipment, repay bank borrowings and for working capital and listing expenses.

Reservoir Link’s substantial shareholders include Reservoir Link Holdings Sdn Bhd (RL Holdings) and Pansar Bhd.

The prospectus shows that RL Holdings and Pansar own a 46.08% and 20% stake respectively in Reservoir Link. RL Holdings’ and Pansar’s holdings will be reduced to 36.84% and 10.39% stakes respectively, post-IPO.

Reservoir Link executive director Thien Chiet Chai (left) and chief executive officer and managing director Datuk Wan Hassan Mohd Jamil at the launch of the prospectus today. (Photo by Shahrin Yahya/The Edge Markets)