KUALA LUMPUR: Straits Energy Resources Bhd has proposed to list its 76.68 per cent-owned TMD Energy Ltd on the New York Stock Exchange (NYSE) American by the fourth quarter of 2024 (Q4 2024).
In a filing to Bursa Malaysia, the company stated that after further deliberation by the board, the company opined that it will seek the proposed listing on the NYSE instead of the Nasdaq stock exchange as planned initially.
The proposed listing is subject to the relevant approvals from the US Securities and Exchange Commission and NYSE American.
In October last year, Straits Energy had announced its plans to spin-off its oil bunkering and shipping related services segment through a Nasdaq listing by way of a registered public offering.
The proposed IPO entails at least 1.75 million new TMD Energy shares representing 8.05 per cent of its enlarged issued share capital of TMDEL after the IPO, and up to four million issue shares representing not more than 16.67 per cent of the enlarged issued share capital after the IPO.
"Based on the indicative issue price ranging between US$3.25-US$3.75 per issue share (or equivalent to RM15.19-RM17.52 per share ) which is subject to prevailing negotiations between the board of TMD Energy and the underwriters, the proposed IPO is expected to raise gross proceeds ranging between US$5.69 million-US$15.00 million (or equivalent to RM26.57 million-RM70.09 million)," it added.
Upon completion of the listing, Straits Energy will remain as the controlling shareholder of TMD Energy with more than 60 per cent stake.
TMD Energy expects to issue its final prospectus that sets out the detailed information of the proposed IPO tentatively by Q4 2024.
Straits Energy shares closed 4.17 per cent or half a sen lower at 12 sen for a market capitalisation of RM114.36 million.