Thursday 28 Mar 2024
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KUALA LUMPUR: EA Technique (M) Bhd, enroute to list on the Main Market of Bursa Malaysia on Dec 11, is seeking joint ventures (JV) to diversify into risk sharing contracts post-listing.  The company is principally involved in marine transport, offshore storage of oil and gas (O&G) and the provision of port marine services.

Managing director Datuk Abdul Hak said the JV partners should possess technology and financial capabilities as well as experience.

“We hope we will venture into that. This is our vision after listing,” he told a media briefing at the launch of the prospectus yesterday.

He said the move to provide marginal field solutions for extraction of oil is a future plan for the firm and not an immediate plan.

EA Technique plans to raise up to RM74.1 million in an initial public offering by selling 114 million new shares for 65 sen apiece. It also includes an offer for sale of 15 million existing shares.

The 65.4% indirectly-owned firm of Kulim (M) Bhd will use a major portion of the proceeds to repay bank borrowings, for capital expenditure and working capital.

When asked if the time is right to go public, Abdul Hak said that time is “not a factor”.

“I know you are referring to declining oil prices, but we believe that our business is well insulated,” he said. “We do not only depend on the O&G business, but also port services and shipyard. So we are quite covered in terms of our core businesses.”

 

This article first appeared in The Edge Financial Daily, on November 25, 2014.

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