KUALA LUMPUR (July 14): Ocean Vantage Holdings Bhd, slated to be listed on Bursa Malaysia's ACE Market on July 22, saw its initial public offering (IPO) oversubscribed by 15.9 times.

In a statement today, Ocean Vantage said it has received a total of 5,509 applications for 347.3 million shares with a value of RM90.3 million from the Malaysian public for the 20.55 million shares on offer.

For the bumiputera portion, a total of 2,585 applications for 110.39 million shares were received, translating into an oversubscription rate of 9.74 times.

The remaining public portion saw a total of 2,924 applications for 236.91 million shares received, representing an oversubscription rate of 22.06 times.

The listing exercise involves a public issue of 82.2 million new ordinary shares at an issue price of 26 sen per share, representing 20% of its enlarged issued share capital.

As for the remaining shares, 4.11 million are for eligible directors and employees, 57.54 million are earmarked for private placement to selected investors while 41.1 million existing shares are offered for sale by way of private placement to selected investors.

The 4.11 million shares available for applications by eligible directors and employees have also been fully subscribed.

In addition, the private placement of 57.54 million shares as well as the offer for sale of 41.1 million existing shares, both allocated for selected investors, have all been fully placed out.

The company raised approximately RM21.4 million in IPO proceeds, and will notify all successful applicants for its shares by July 21.

"We are truly heartened by the positive response we received for our IPO. We believe the oversubscription rate reflects the confidence that the investing public has in our group's business model and future plans," said Ocean Vantage managing director Kenny Ronald Ngalin.

"This is indeed an opportune time for us to strengthen our footing and seize the opportunities in the O&G (oil and gas) industry notwithstanding the current unprecedented situation. We are excited and ready to embark on our next journey of growth and continue to create long-term value for our shareholders.

"Over the mid-term, we will focus on capturing market share in the support services sector for the upstream segment by developing more in-house capabilities such as underwater diving services and advanced non-destructive testing and inspection services,” he said, adding that the company plans to enter into the downstream segment and hopes to replicate its success with its strong industry experience.

Ocean Vantage is a Sarawak-based integrated support services provider for both upstream and downstream of the O&G industry, with services including engineering, procurement and construction and project management, supply of manpower, supply of materials, tools and equipment, as well as provision of drilling rig charter services.

Upon listing on the ACE Market, Ocean Vantage will have a market capitalisation of RM106.9 million based on the issue price of 26 sen and its enlarged share capital of 411 million shares.

M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for this IPO exercise.