KUALA LUMPUR: Propel Glonal Bhd is confident that the new corporate structure and cash reserve arising from a regularisation plan will support expansion plans for oil and gas (O&G) and building technical services businesses.
The regularisation plans will see Propel Global take over the listing status of Daya Materials Bhd on April 28.
The company will trade under the stock name PGB and stock code 0091 on Bursa Malaysia's Main Market from Thursday.
Propel Global's listing follows the approval by shareholders at an extraordinary general meeting on Jan 21 this year of a regularisation plan for Daya Materials that had been proposed on Dec 31 2020.
Angeline Lee, group chief executive officer of Propel Global said "We would like to thank stakeholders for keeping the faith with us on the corporate exercises that will conclude with the listing of Propel Global. We have seen the private placement representing 41 per cent of our outstanding shares fully taken up by prominent investors and industry veterans."
She added that as a result of the funding from the private placement, Propel Global had a healthy cash balance and minimal debt as the gearing ratio had been reduced to 0.6 times."
"The group is actively exploring opportunities in the O&G industry especially in Sabah and Sarawak. High crude oil prices will encourage more investments into the industry, especially from oil majors. The country's borders reopening will spur business activities and therefore demand for oil and gas."
Lee said according to the US Energy Information Administration's recent Short-Term Energy Outlook, international crude oil benchmark Brent was expected to trade at an average US$108 a barrel in the second quarter of the year and US$102 a barrel on average in the second half of 2022.
"We will continue to concentrate on expanding our existing well intervention and pipe recovery business by training our field engineers to deliver a wider range of downhole well technology solutions for our clients.
"Over the mid-term, we are looking to venture into the wireline business as this will make us more competitive
in the plug and abandonment as well as the decommissioning programmes for both downstream and upstream facilities."
Lee expects more opportunities opening up for the building technical services business as foreign multinational companies investing in Malaysia set up their plants and facilities.
"We intend to leverage on the synergy from our construction and project management technical services as well as heating, ventilation and air conditioning operation and maintenance services to grow the building technical services business," she said.
Propel Global also has mid-to-long-term plans to venture into sustainable development and digital technology as part of its transition to a zero-carbon business focus that includes renewable energy and electrification.