Keyfield International Bhd Surges 89% in Bursa Malaysia Debut

Keyfield International, an offshore support vessel company, made a strong debut on Bursa Malaysia, with its shares opening at a 89% premium, reflecting robust investor confidence in the industry's growth prospects.

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Salman Khan
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Keyfield International Bhd Surges 89% in Bursa Malaysia Debut

Keyfield International Bhd Surges 89% in Bursa Malaysia Debut

Keyfield International Bhd, an offshore support vessel company, made a strong debut on the Main Market of Bursa Malaysia on Monday, April 22, 2024. The company's shares opens at RM1.70, an impressive 89% premium over its initial public offering (IPO) reference price of 90 sen per share, reflecting robust investor confidence in the offshore support vessel industry.

By midafternoon, Keyfield's share price had surged over 100% to RM1.88, with 91.10 million shares traded. The company's shares closed at RM1.93, a staggering 114.4% higher than the offer price, marking the best maiden day trading performance of a Main Market IPO stock over the last six years.

Keyfield raised RM188.1 million from the listing, which will be used to redeem preference shares, settle vessel purchase considerations, repay bank borrowings, and for working capital and listing-related expenses. The group is bullish on the industry's outlook, driven by the expected surge in offshore activities and limited supply of suitable vessels.

Why this matters: Keyfield International's impressive debut on Bursa Malaysia highlights the strong investor appetite for companies in the offshore support vessel industry. The company's successful IPO and subsequent share price surge demonstrate the market's confidence in Keyfield's growth prospects and the potential for the offshore oil and gas sector to rebound as global energy demand recovers.

Keyfield CEO Datuk Darren Kee Chit Huei expressed optimism about the company's prospects, stating, "We are bullish on the industry's outlook, driven by the expected surge in offshore activities and limited supply of suitable vessels. Our fleet of 11 Malaysian-flagged vessels and access to third-party vessels positions us well to support the local oil and gas industry." Keyfield's operations are not directly impacted by the geopolitical tensions in the Middle East, as its vessels predominantly operate in Southeast Asia.

Key Takeaways

  • Keyfield International Bhd debuted on Bursa Malaysia's Main Market, opening at RM1.70.
  • Keyfield's shares surged over 100% to RM1.88, closing at RM1.93, a 114.4% premium.
  • Keyfield raised RM188.1 million from the listing, to be used for business operations.
  • Keyfield is bullish on the offshore support vessel industry due to expected surge in activities.
  • Keyfield's operations are not impacted by Middle East tensions, focusing on Southeast Asia.