Turbo-Mech Bhd, a regional distributor of rotating equipment for oil, gas and petrochemical industries, made its debut on Bursa Malaysia Main Market today with a 5.5 sen premium over its initial public offering (IPO) price of 63 sen.
At the opening bell, the counter opened at 68.5 sen with 1,497 lots changing hands. At a press conference held in conjunction with the listing, Turbo-Mech executive chairman Gan Ching Hai said he was happy with the opening price.
The group’s public issue of 18.068 million shares, of which six million shares are for public subscription, is expected to raise gross proceeds of RM11.383 million.
Gan said the group intended to utilise RM2 million from the proceeds to establish a new workshop in Jakarta to provide maintenance, repair and overhaul services for its products and another RM2 million to set up a light fabrication yard in Rayong, Thailand.
Turbo-Mech has subsidiaries in Singapore, Indonesia and the Philippines, associated companies in Malaysia, Brunei and Thailand and a representative office in Vietnam.
“In the next three years, we will focus on the operations in South East Asia. There are a lot of potential in the region, especially Indonesia.
“Indonesia has many islands and has a long coastal line. I’m sure there are a lot of oil and gas deposits,” he said.
The group is expected to open new sales offices in Balikpapan, Kalimantan and Pekanbaru, Sumatra, this year.
Despite the political instability in Thailand, Turbo-Mech did not intend to postpone the fabrication yard project in Rayong.
“The facility will allow the group to fabricate a range of Skid Mounted Equipment to help diversify and promote business growth this year,” he said.
Gan also said the group was interested to expand to Myanmar but has yet to make plans to venture there. “Myanmar has big gas fields.
In fact, some South Korean companies have started developing their gas fields there, intending to pipe gas from south to north Myanmar and into China,” he added
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