Malaysia: Straits Energy plans to list subsidiary TMD Energy on NYSE American

Straits Energy Resources Berhad (SER) on Monday (12 August) announced its proposal to list its oil bunkering segment via the listing and quotation of the ordinary shares in its 76.68%-owned subsidiary, TMD Energy Ltd (TMDEL), on the New York Stock Exchange American (NYSE American).

In a filing with Bursa Malaysia, the company said it had initially planned to list its oil bunkering and shipping-related services segment on the National Association of Securities Dealers Automated Quotations (NASDAQ) through a registered public offering. 

SER said that instead of seeking a listing on the NASDAQ stock exchange, it will seek to list its subsidiary on the NYSE American through a initial public offering (IPO). 

Based on the indicative issue price ranging between USD3.25 and USD3.75 per issue share (or equivalent to MYR 15.19 to MYR17.52 per issue share), the proposed IPO is expected to raise gross proceeds ranging between USD5.69 million and USD15.00 million (or equivalent to MYR 26.57 million to MYR 70.09 million).

“TMDEL expects to issue its final prospectus that sets out the detailed information of the Proposed IPO tentatively by the fourth quarter of 2024,” SER said. 

The company said the proposed listing of TMDEL to 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 added the listing will also enable the company 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.

Related: Malaysia: Straits Energy proposes to list oil bunkering and shipping segment on Nasdaq

Photo credit: Straits Energy Resources Berhad
Published: 13 August, 2024