(From left) M&A Securities corporate finance head Gary Ting, Keyfield group COO Mohd Erwan Ahmad, group CEO Datuk Darren Kee, chairperson Haida Shenny Hazri, M&A Securities MD Datuk Bill Tan, Maybank Investment Bank BHD officer in charge Tengku Ariff and ECM head Raymond Chooi at the launch of the prospectus on Tuesday. (Photo by Patrick Goh/The Edge)

KUALA LUMPUR (March 26): Oil and gas (O&G) services firm Keyfield International Bhd on Tuesday began taking orders from investors for its Main Market initial public offering (IPO) that would raise up to RM188.06 million.

The IPO is priced at 90 sen apiece and comprises entirely of new shares, according to its prospectus. The company allocated 40 million shares to the public, 24 million shares to eligible persons and 144.96 million shares to Bumiputera and select investors through private placement.

Applications for the IPO will close on April 3 and listing has been scheduled for April 22.

All in all, the IPO offers investors a total of 26% of the company’s enlarged share capital in the company that made a net profit of RM83.35 million in Jan-Sept 2023 and RM48.88 million for 2022.

Keyfield mainly charters accommodation vessels and provides related onboard services such as accommodation, catering, housekeeping, laundry and medical support services to national O&G corporation Petronas and other contractors in the industry.

More than one-third of the proceeds from the IPO has been earmarked for settlement of balance purchase consideration for 500-passenger barge Blooming Wisdom and another one-third will go towards redeeming cumulative redeemable non-convertible preference shares in Keyfield.

The company plans to also use 18.6% of the proceeds to settle the balance purchase consideration for Helms 1 platform supply vessel, the prospectus showed. The balance will go towards repayment of bank borrowings, fund working capital, and to defray listing expenses.

Keyfield's IPO would be the second Main Market listing so far this year, following Prolintas Infra Business Trust's debut on Mar 13, 2024.

M&A Securities is the principal adviser, underwriter and joint placement agent while Maybank Investment Bank is also the joint placement agent.