KUALA LUMPUR (June 9): Oil and gas (O&G) service provider Reservoir Link Energy Bhd is proceeding with its plan to be listed on Bursa Malaysia’s ACE Market despite the current turbulence in the global economy.

The group today signed an underwriting agreement with Kenanga Investment Bank Bhd in relation to its initial public offering (IPO). 

“The current global challenges do not discourage us from being one step closer to be a listed company,” Reservoir Link chief executive officer (CEO) and managing director Datuk Wan Hassan Mohd Jamil said in a statement.

“Our industry is currently affected by both the Covid-19 pandemic and the low oil price environment. However, our management has been through challenging times before, and we have always managed to sail through rough conditions. It is imperative not to lose sight of the long-term fundamentals that drive our business,” he added. 

Reservoir Link’s IPO involves the public issue of 57.13 million new shares and an offer for sale of 31 million existing shares. 

Kenanga is the underwriter of 18.25 million public issue shares that will be made available for application by the Malaysian public, eligible directors, employees and business associates of Reservoir Link and its subsidiaries.

The group said it had received approval from the authorities to list its entire enlarged issued share capital of 285 million shares. 

Reservoir Link is an investment holding company whereas its subsidiaries are primarily involved in the provision of O&G well services which include well perforation, leak repair, testing, wash and cement, wireline and O&G production enhancement services.