Petra Energy gets SC nod for listing

January 24 2007

PETRA Perdana Bhd subsidiary Petra Energy Bhd has received Securities Commission approval to list on the main board of Bursa Malaysia.

"The timing is just right for Petra Energy to take its Brown Field operations to the next level. We are confident of expanding our role not only in the domestic but also in the regional market," Petra Perdana executive chairman and chief executive officer Tengku Datuk Ibrahim Petra said in a statement.

He said although the price of crude oil is hovering around the US$50 per barrel range, lower than what it was before, there is still potential for maintenance, operations and retrofitting services for existing oil and gas platforms as oil companies seek to maintain or increase production output.

Market studies show that about 150 of the 270-odd oil and gas platforms in Malaysia and more than 600 platforms in the region exceed 20 years of age, he added.

Petra Energy's listing will entail a public issue of 46 million new ordinary shares of RM0.50 each and a bonus issue of 65 million new shares to be issued to all shareholders of Petra Energy prior to the listing on the basis of one new share for every two shares held after the public issue.

The listing exercise is expected to be completed in the second quarter of 2007.

Based on the indicative issue price of RM2.49 per share (or a theoretical ex-bonus price of RM1.66 per public issue share), Petra Energy expects to raise a total of RM114.54 million.

Tengku Ibrahim said the listing would also improve the group's gearing, resulting in a healthier balance sheet and enabling continued expansion into the Brown Field market.

Alliance Investment Bank Bhd has been appointed adviser, underwriter and placement agent for the listing of Petra Energy.