KUALA LUMPUR: E.A Technique (M) Bhd, which made its debut on Bursa Malaysia’s Main Market today, expects to convert its oil tanker into a Floating Storage and Offloading (FSO) vessel next year, as part of expansion plans.
Managing Director Datuk Abdul Hak Md Amin said the conversion is expected to contribute about US$40 million to the group’s topline over the next four years.
“The FSO is an ongoing project and slated to be completed in April 2015,” he told a press conference after the company’s listing.
E.A. Technique, is principally an owner and operator of marine vessels providing marine transportation and offshore storage of oil & gas (O&G), as well as provision of port marine services.
Abdul Hak said the company will be delivering six new tugboats vessels in 2015 with each worth an average RM20 million and of varied sizes.
As of Oct 31 this year, E.A. Technique operated 31 marine vessels, comprising eight O&G tankers - inclusive of one floating storage unit - two offshore support vessels and 21 marine support vessels.
Besides its expansion plan, the company will also be tendering for a few projects worth RM1 billion, and hopes to secure one or two in the near future.
The company currently has a RM1.2 billion orderbook which puts it in a comfortable position to bid for projects that are strategic to its growth plans.
“This orderbook will last us until 2025. The group aims to focus on the domestic market for now as it has quite a handful of projects within it,” said Abdul Hak .
The company’s Initial Public Offering (IPO)was oversubscribed by 5.12 times.
E.A. Technique aims to raise RM74.1 million through the public issue of 114 million ordinary shares of 65 sen each, and will have an implied market capitalisation of about RM327.6 million upon listing.
He said the gross proceeds of the IPO will be utilised in line with E.A. Technique’s business strategy for the enhancement of operations and the repayment of bank borrowings.
E.A. Technique’s opening price on listing was 59 sen, and a six sen discount over the 65 sen of its initial offer price.
At the opening bell, 1.62 million shares were traded. – Bernama