Latest news with #Enproserve
The Sun
18-07-2025
- Business
- The Sun
Enproserve makes ACE Market debut, steps up diversification to secure recurring income
KUALA LUMPUR: Enproserve Group Bhd, a provider of plant maintenance and engineering services, is charting a strategic expansion into the heavy lifting and equipment rental segment – a move the company views as a scalable, recurring income stream beyond its traditional contract-based operations. While the group remains firmly anchored in its core offerings – plant maintenance and turnaround and engineering, procurement, construction and commissioning – it is now broadening its portfolio to include rental services for cranes, skylifts and small lorries. This diversification gained momentum following the recent signing of a master service agreement with Petroliam Nasional Bhd (Petronas), covering multiple subsidiaries including Petronas Chemicals Group Bhd, Petronas Gas Bhd and Petronas Chemicals Fertiliser Kedah Sdn Bhd. 'This is an asset-heavy segment, but it's one we are confident in,' Enproserve CEO Mohamad Nizam Yaakub said at a press conference following the company's listing on Bursa Malaysia's ACE Market today. 'The rental business provides recurring income, and we're targeting strong demand across Peninsular Malaysia.' Enproserve currently holds 33 long-term contracts, primarily with Petronas and its subsidiaries, extending through 2029. Its exclusive focus on downstream operations provides a degree of insulation from the volatility of crude oil prices. 'Plant maintenance will never stop. These are statutory requirements,' said group managing director Azman Yusof. 'Unlike upstream operations, which may scale down during periods of low oil prices, downstream plants must remain operational – and that means ongoing maintenance is non-negotiable.' This resilience has enabled Enproserve to become one of the few 'pure-play' downstream service providers listed on the local bourse. This niche positioning analysts believe could attract institutional investor interest in the near future. The group's current operations span Johor, Malacca, Terengganu and its Cyberjaya headquarters. While East Malaysia is not on its immediate roadmap, Azman said, the company remains open to expansion should the right partner or opportunity arise. 'Right now, we're staying focused on the 2027 Pengerang Integrated Complex (PIC) turnaround. It requires over a year of preparation, and we don't want to stretch ourselves too thin,' he explained. Enproserve opened at 26 sen in its market debut today, two sen above the initial public offering (IPO) price of 24 sen, with 5.31 million shares traded at the opening bell. It closed at 26.5 sen, 2.5 sen or 10.4% above the IPO price, on volume of 75.849 million shares. The IPO raised RM50.4 million, with RM23.7 million earmarked for capital expenditure, including the purchase of cranes, forklifts, and other heavy machinery. These assets will support internal operations and be made available for rental. 'We didn't expect the price to rise this morning given current market sentiment, but it shows that investors are confident in our direction,' said Azman. 'We feel relieved and optimistic.' While the group does not yet have a formal dividend policy, Azman confirmed that one would be introduced 'eventually', particularly as the company eyes a future transfer to the Main Market. Meanwhile, Enproserve is positioning itself as a key player in Malaysia's largest-ever plant turnaround project – the PIC in Johor. The complex is described by Azman as 'the biggest in Southeast Asia', and the scale of the 2027 turnaround is expected to contribute significantly to the group's revenue. Though exact figures are subject to unit-rate contracts, Azman described the opportunity as 'much larger than what we are currently securing', and one that necessitates a full year of integrated planning. 'We're already mobilising internal resources and preparing our teams to ensure a seamless execution,' he said. 'This is not just another job – it is the largest plant turnaround in Malaysia.' With more than two decades of experience, Enproserve is licensed by Petronas through Standardised Work and Equipment Categories codes, and is registered as a Grade G7 contractor with the Construction Industry Development Board, enabling it to undertake projects of unlimited value. As Malaysia's oil and gas and petrochemical sectors prepare for cyclical maintenance and capacity expansion, Enproserve's combination of niche expertise, deep client relationships, and fresh capital from its IPO places it in a strong position to ride the sector's growth wave. 'We believe in organic growth. And right now, the growth ahead of us is both significant and achievable,' Azman said.
Barnama
18-07-2025
- Business
- Barnama
Enproserve Set To Focus On Pic Turnaround Project, Crane Segment Post-ipo
REGION - CENTRAL > NEWS KUALA LUMPUR, July 18 (Bernama) -- Enproserve Group Bhd is concentrating on two main areas following its initial public offering (IPO) listing today, mainly preparing for the 2027 plant turnaround project at the Pengerang Integrated Complex (PIC) in Johor and expanding into the crane and heavy lifting segment. Group managing director Azman Yusof said that integrated planning for the turnaround is already underway, with dedicated teams focusing on equipment readiness and coordination to ensure smooth execution. 'The size of the plant itself -- the biggest complex in Southeast Asia -- shows how significant the revenue will be from the maintenance and turnaround exercise. It will be more than what we are getting right now,' he told reporters during the group's listing press conference today. bootstrap slideshow He said Enproserve's current contracts in plant maintenance and turnaround are expected to sustain the company over the next two years, while the PIC job, backed by a 10-year contract, would drive additional revenue in the medium term. 'Our contracts work on a unit rate basis, and we will be quoting to the client accordingly. But what I can say now is that it is going to be much more than what we currently have,' he said. As for the IPO proceeds, Azman said most of the funds raised will be channelled into building up the group's crane and heavy lifting services. 'In fact, most of the IPO proceeds will go to this business. We have secured a master service agreement to supply cranes, skylifts, and forklift lorries to Petronas Chemical Group, Petronas Gas, and Petronas Fertiliser,' he said. He added that, while there are currently no immediate plans to venture into East Malaysia, the group remains open to the possibility if the right strategic partner were to come along. At the opening bell today, Enproserve debuted on Bursa Malaysia's ACE Market at 26 sen, up two sen from its IPO price of 24 sen, with 5.31 million shares traded.
The Star
18-07-2025
- Business
- The Star
New ACE Market listing Enproserve rises 8% at open
KUALA LUMPUR: Shares in mechanical and civil engineering services firm Enproserve Group Bhd jumped 8.33% in a strong start to its first day of public-listed trading on the ACE Market of Bursa Malaysia. The company, which had raised RM50.4mil via an initial public offering (IPO) to fund its expansion, was bought up to 26 sen a share in pre-opening trade, two sen higher than its float price. As at 10am, the share had risen four sen or 16.67% above its IPO price to 28 sen a share after 44.68 million shares traded, making it the second most active stock on the Malaysian market. Of the RM50.4mil raised from the public issue, Enproserve has allocated RM23.68mil or 47% towards capital expenditure including RM9.16mil for new machinery and equipment, RM9mil for lorries and a mobile crane, and RM5.5mil to set up a crane depot facility. It said this is to better serve its ongoing and upcoming contracts without denting margins, and to reduce reliance on leasing. Another RM11.65mil or 23% from the IPO proceeds has been set aside for the repayment of bank borrowings, which is expected to reduce the group's net gearing ratio from 1.07 times to 0.50 times. The group has also earmarked RM10mill or 20% of the proceeds for working capital, while the remaining RM5.03mil or 10% will be used to cover listing expenses. On Wednesday, Enproserve reported a net profit of RM4.17mil on revenue of RM46.78mil, and an earnings per share of 0.5 sen for the first quarter ended March 31, 2025. There are no comparative results from the previous year given this is the company's first interim financial report announced in compliance with Bursa Malaysia's listing requirements.
New Straits Times
18-07-2025
- Business
- New Straits Times
Enproserve rises 8.3pct on Ace Market debut
KUALA LUMPUR: Mechanical and civil engineering services firm Enproserve Group Bhd made its ACE Market debut at 26 sen, marking an 8.3 per cent premium over its initial public offering (IPO) price of 24 sen. The stock climbed to a high of 30.5 sen, representing a 27 per cent gain, with 32.7 million shares traded. Enproserve raised RM50.4 million through its IPO to enhance its capabilities in providing mechanical and civil engineering services to the oil and gas as well as petrochemical sectors. The IPO involved the issuance of 315 million new shares, representing 30 per cent of its enlarged share capital of 1.05 billion shares. From the total proceeds, Enproserve intends to allocate RM33.7 million, or 66.9 per cent, towards capital and operational expenditure. This includes investments in heavy-lifting equipment, facility upgrades, and the expansion of its plant maintenance and turnaround service offerings. Enproserve holds full accreditation under Petroliam Nasional Bhd's licensing and registration system for the relevant standardised work and equipment category codes, enabling the group to offer a wide range of services to Malaysia's oil and gas and petrochemical industries.
The Star
10-07-2025
- Business
- The Star
Enproserve IPO sees 0.43 times oversubscription for public shares
Enproserve Group Bhd managing director Azman Yusof. — AZLINA ABDULLAH/The Star KUALA LUMPUR: Mechanical and civil engineering services provider Enproserve Group Bhd saw strong demand for its ACE Market initial public offering (IPO), with the public portion oversubscribed by 0.43 times. In a statement, Enproserve said it received 1,414 applications for 74.9 million public issue shares from the Malaysian public, valued at around RM18mil. This exceeded the 52.5 million shares offered to the public via balloting, leading to an oversubscription rate of 0.43 times. Enproserve said the strong investor demand across all subscription tranches reflects the group's solid value proposition and strategic position within a key industry segment. 'The strong reception to our IPO validates investor confidence in Enproserve's resilient business model and strategic position within the vital oil and gas and petrochemical industries. 'With enhanced capabilities as we continue to scale our operations, we are primed to accelerate growth and further expand our market share,' group managing director Azman Yusof said. The Bumiputera portion received 705 applications for 40.57 million shares, resulting in an oversubscription rate of 0.55 times, while the non-Bumiputera portion saw 709 applications for 34.39 million shares, translating to an oversubscription rate of 0.31 times. At the same time, all 244.18 million shares offered to selected investors through private placement were fully taken up. The 18.32 million shares set aside for eligible directors, employees, and contributors to the group were also fully subscribed. The IPO, priced at RM0.24 per share, involves a total of 315 million ordinary shares, consisting of 210 million new shares under the public issue and 105 million existing shares offered for sale. Upon listing, the company's enlarged share capital will stand at 1.05 billion shares. The IPO raised RM50.4mil in gross proceeds for Enproserve through new share issuance. Of this, RM23.7mil will go towards capital spending to strengthen its plant maintenance, turnaround, and engineering services, including the purchase of heavy equipment and vehicles. The remaining RM26.7mil will be used for working capital, loan repayments, and listing-related expenses. Enproserve is expected to be listed on the ACE Market of Bursa Malaysia on July 18. KAF Investment Bank Bhd is the principal adviser, sponsor, sole placement agent, and sole underwriter for the IPO.
