Kenanga terminates MoU with Petronas on O&G vendors’ IPO programme

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KUALA LUMPUR (July 20): Kenanga Investment Bank Bhd has terminated the memorandum of understanding (MoU) it signed with Petroliam Nasional Bhd (Petronas) aimed at expediting the listing of oil and gas services and equipment (OGSE) vendors on Bursa Malaysia.

“Since the signing of the MoU on Feb 18, due to the Covid-19 pandemic and the recent fluctuation in the oil prices, there is minimal development on the progress of the MoU,” Kenanga said in a bourse filing today.

The investment bank said it had issued a 30-day notice of termination to Petronas, which has resulted in the MoU to no longer be effective from Aug 19.

Under the MoU, the two parties sought to build resilience and improve governance and sustainability of OGSE vendors, through initial public offerings (IPOs).

The programme is aimed at vendors keen on undertaking IPOs with the collaboration between Kenanga and Petronas, serving to ease and expedite the IPO candidates’ journey for an eventual listing.

Kenanga share price closed 9.5 sen or 15.45% higher at 71 sen today, valuing the group at RM496.09 million. The counter saw 7.09 million shares traded.