The Star, Corporate News – 15 July 2020
KUALA LUMPUR: Reservoir Link Energy Bhd made a strong debut on the ACE Market on Wednesday, opening at 65 sen or 24 sen above its offer price of 41 sen.
At 10am, the upstream oil & gas (O&G) well related services provider, was trading at 49.5 sen, up 8.5 sen. There were 129.86 million shares traded at prices ranging from 48.5 sen to 79 sen.
The FBM KLCI was up 2.27 points or 0.14% to 1,601.02. Turnover was 1.92 billion shares valued at RM1.41bil. There were 365 gainers, 325 losers and 377 counters unchanged.
Its listing exercise raised RM23.42mil of which RM10mil is for the purchase of well testing equipment, RM5mil to repay bank borrowings, RM4.92mil for working capital and the remaining RM3.5mil for listing expenses.
Speaking at the listing ceremony, Reservoir Link CEO and managing director Datuk Wan Hassan Mohd Jamil said the IPO would reatly improve Reservoir Link’s position in the market.
“We are committed to further enhance our current business and improve our competitiveness by purchasing our own well testing equipment, which will significantly boost our capabilities to better serve our clients as well as improve Reservoir Link’s margins.
“Subsequently, we intend to expand beyond our current market reach and secure more jobs with our untiring perseverance and strong dedication, ” he said.
Wan Hassan said the gradual improvement in global oil price would benefit the company as it seeks to be more competitive and ready to bid for more contracts.
Kenanga Investment Bank Berhad is the principal adviser, sponsor, sole underwriter and placement agent for this listing exercise.