malaysiang
KUALA LUMPUR, Straits Energy Resources Bhd has proposed to list its 76.68 per cent-owned subsidiary, TMD Energy Ltd (TMDEL), on the New York Stock Exchange (NYSE) American by the fourth quarter (4Q) of 2024.
The company had initially planned to list its oil bunkering and shipping-related services segment on the National Association of Securities Dealers Automated Quotations (NASDAQ).
Straits Energy said in a filing with Bursa Malaysia today that instead of pursuing a listing on the NASDAQ stock exchange, it will seek to list its subsidiary on the NYSE American.
‘Based on the indicative issue price ranging between US$3.25 and US$3.75 per issue share (US$1=RM4.450), the proposed initial public offering (IPO) is expected to raise gross proceeds ranging between US$5.69 million and US$15 million.
‘Barring any unforeseen circumstances and subject to all required approvals being obtained, the board expects the proposed listing of the subsidiary to be completed by the 4Q of 2024,’ it said.
According to Straits
Energy, TMDEL intends to utilise proceeds of up to RM50.93 million towards the expansion of its oil bunkering segment, which may include but is not limited to, the purchase of cargo oil.
‘The Group intends to earmark up to approximately RM19.16 million of the proceeds raised from the proposed IPO to fund its listing expenses.
‘The listing of the subsidiary would enable the management of Straits Group to efficiently allocate its resources to accelerate the expansion and growth of the oil bunkering and shipping-related services business,’ it said.
According to the filing, the listing would also enable Straits Energy to unlock the value of its investment in its oil bunkering and shipping-related services business through the share offering exercise under the proposed IPO, thus enhancing the value for shareholders.
Source: BERNAMA News Agency
