Oil and gas services and equipment provider, Steel Hawk Berhad ("Steel Hawk" or the "Company"), has officially launched its prospectus as it prepares to transfer its listing from the LEAP Market to the ACE Market of Bursa Malaysia Securities Berhad ("Bursa Securities").

Steel Hawk, through its subsidiaries, is a key player in the oil and gas ("O&G") industry, offering onshore and offshore support services. The Group's core capabilities include engineering, procurement, construction, and commissioning ("EPCC") services, along with the maintenance of topside O&G facilities, installation and maintenance of oilfield equipment, and supply of related equipment.

Deputy Chairman and Executive Director of Steel Hawk, Dato' Sharman K. Michael, described the prospectus launch as a pivotal moment for the Company. "The transfer to the ACE Market will provide us with access to a broader fundraising platform to support our expansion plans and accelerate our long-term growth initiatives," he said.

Dato' Sharman also expressed optimism about Malaysia's O&G industry, highlighting that Steel Hawk is well-positioned to capitalize on upcoming opportunities. "We anticipate a surge in potential contracts, which will enable us to expand our market share and drive improved financial performance," he added.

From the RM13.50 million to be raised through the transfer of listing, RM7.00 million (51.85%) will be allocated to expanding the Company's fabrication capacity fivefold by constructing a new fabrication yard in Kemaman, Terengganu, known as Teluk Kalung Facility 2. This expansion is expected to optimize the turnaround time of Steel Hawk's EPCC services and reduce reliance on subcontractors.

Dato' Sharman also outlined the Company's plans to leverage its existing technical expertise to enter the renewable energy sector, specifically focusing on solar and hydroelectric energy. Additionally, Steel Hawk aims to provide integrated hook-up and commissioning ("HUC") services to interconnect O&G infrastructure.

The remaining funds will be used for working capital, bank loan repayments, and covering the expenses related to the transfer of listing.

Steel Hawk's listing on the ACE Market involves the public issuance of 90 million new ordinary shares, which will represent 18.37% of the Group's enlarged share capital. An additional 44.70 million existing shares will be offered to selected investors via private placement.

Upon listing, Steel Hawk's market capitalization is expected to be approximately RM73.50 million, based on an IPO price of RM0.15 per share.

The Group has demonstrated significant financial growth, with revenue increasing from RM24.85 million in FY2021 to RM72.54 million in FY2023, representing a compound annual growth rate ("CAGR") of 71.00%. Net profit also saw substantial growth, rising from RM2.08 million in FY2021 to RM7.22 million in FY2023, reflecting a CAGR of 85.16%.

Applications for shares are now open and will close on 23 August 2023 at 5:00 p.m. The Group is scheduled to be listed on the ACE Market on 5 September 2024, with UOB Kay Hian Securities (M) Sdn Bhd serving as the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the transfer of listing.