KUALA LUMPUR (Aug 12): Oil and gas (O&G) pipes supplier Saliran Group Bhd is seeking to list on the ACE Market on Bursa Malaysia, amid elevated global crude oil prices.

In a filing with Bursa Malaysia on Monday, the group is planning to utilise the proceeds raised from its initial public offering (IPO) to further expand its business in Indonesia by establishing a sales office, as well as working capital and buying new equipment.

“We intend to rent an office unit measuring approximately 1,000 sq ft in South Jakarta, Indonesia.

“This new office will support our business expansion in the country and enable our group to capture opportunities arising from market demand in Indonesia as we will be in close proximity to, and accessible by, local customers in Indonesia,” the company said in its prospectus.

The proposed IPO involves 80.4 million new shares at a price that it will determine later. About 47.86 million of the public shares will be available for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), 19.15 million will be available for the public market and 7.66 million shares for eligible directors and employees of Saliran and its subsidiaries.

Another 38.2 million existing shares will be offered to selected investors through private placement.

For the financial year ended Dec 31, 2023 (FY2023), Saliran posted a 61.8% increase in net profit to RM10.15 million from RM6.27 million a year earlier, on the back of 75% jump in revenue to RM243.16 million compared to RM138.62 million previously.

Presently, the bulk of its sales in FY2022 and FY2023 came from its Malaysian operation, which accounted for 99.27% and 83.5% of total revenue, respectively.

Nonetheless, Saliran reported that its Indonesian operations have shown an increasing trend, rising from RM1.21 million or 1.71% of total revenue in FY2021 to RM37.6 million or 15.46% in FY2023.

For perspective, Bursa Malaysia companies similar to Saliran, such as Pantech Group Holdings Bhd and Unimech Group Bhd, are involved in the pipes, fittings, flanges, and related parts industry.

Malacca Securities Sdn Bhd is the IPO’s principal adviser, sponsor, underwriter and placement agent.