Oiltek proposes secondary listing on Bursa Malaysia’s main market
This provides the company the flexibility to access different equity markets to raise funds
[SINGAPORE] Oiltek International announced on Monday (Jul 21) that the group is proposing a secondary listing of its entire issued shares on the main market of Bursa Malaysia Securities.
Oiltek’s board said this listing will be beneficial as it will allow the group to broaden its investor reach and base, potentially increase the liquidity of the company’s shares and enhance the company’s value through separate trading platforms. It will also enable the group to tap into additional platforms for future fundraising.
This would provide Oiltek with the flexibility to access different equity markets to raise funds after taking into consideration investors’ demand as well as the cost of raising equity funding on the respective stock exchanges.
The group appointed principal financial advisers in Malaysia and Singapore to start preparatory work for the proposed secondary listing.
These advisers, together with other relevant professional advisers, will be responsible for assisting with the company’s application to the relevant authorities in relation to the proposed secondary listing, among other things. They will also advise and provide guidance to the group on its responsibilities under the relevant rules and regulations of the Securities Commission Malaysia and Bursa Securities, and the listing rules of the Singapore Exchange (where applicable).
No application has been made to Securities Commission Malaysia in relation to the proposed listing by Oiltek as at Monday.
Henry Yong, executive director and chief executive of Oiltek, said: “The board wishes to highlight that the proposed secondary listing is at a preliminary stage and will involve extensive preparatory work, and such preparatory work may involve an uncertain length of time.
“Further, the proposed secondary listing is subject to, among other things, the approvals of the relevant authorities and there is no assurance that the approval of the relevant authorities will be granted.”
Shares of Oiltek closed at S$0.73 on Friday, up 6.6 per cent or S$0.045.
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