United Asiapac Energy IPO: O&G Well Intervention Specialist Heads to ACE Market
United Asiapac Energy Bhd (UAEB) is set to list on Bursa Malaysia's ACE Market on August 19, 2026, with an IPO price of 35 sen per share. The company, which specialises in well intervention services for the upstream oil and gas sector, aims to raise RM48.73 million through the issuance of 139.22 million new shares.
This IPO stands out because it involves a niche O&G company operating from Kemaman, Terengganu and Labuan - two key hubs of Malaysia's oil and gas industry. Notably, there is no offer-for-sale component in this IPO, meaning existing shareholders are not selling their stakes.
Company Profile: United Asiapac Energy
United Asiapac Energy provides specialised well intervention solutions for Malaysia's upstream oil and gas industry. Their core services include:
- Fishing services - retrieving equipment stuck in oil wells
- Plug and abandonment (P&A) - safely closing and abandoning depleted wells
- Sidetracking - redirecting drilling to access new hydrocarbon zones
- Other upstream support services - various well intervention solutions across the lifecycle of hydrocarbon wells
The company operates on a call-out and purchase-order basis, with bases in Kemaman, Terengganu and Labuan. Both locations are strategically positioned near Malaysia's offshore oil exploration and production activities.
According to The Edge Malaysia, UAEB possesses specialised expertise in fishing services - a niche field that requires high technical skills and specialised equipment that not all O&G service companies can offer.
IPO Details
Here is a summary of the key IPO details:
| Detail | Information |
|---|---|
| IPO Price | 35 sen per share |
| Shares Offered | 139.22 million new shares |
| Proceeds Target | RM48.73 million |
| Enlarged Share Capital | 550 million shares |
| Market Capitalisation | ~RM192.5 million |
| Market | ACE Market, Bursa Malaysia |
| Application Closing | August 5, 2026 |
| Listing Date | August 19, 2026 |
| Underwriter | TA Securities |
| Sector | Oil & Gas (upstream services) |
The shares offered represent 25.3% of the company's enlarged share capital. TA Securities serves as the principal adviser, sponsor, underwriter, and placement agent for this IPO.
One notable aspect - this IPO involves only the issuance of new shares (public issue) without any offer-for-sale component. This means existing shareholders are not selling their stakes, which is generally interpreted as a sign of confidence in the company's prospects.
IPO Share Allocation
Of the 139.22 million new shares offered, the allocation is as follows:
- 101.72 million shares - placement with selected investors
- 27.5 million shares - public offering to Malaysian public
- 10 million shares - allocation for directors, employees, and contributors to the company's success
The large placement allocation (73.1% of total IPO) indicates that the majority of shares will be channelled to institutional and selected investors. For retail investors, only 27.5 million shares are available for public application.
Use of IPO Proceeds
Nearly half of the IPO proceeds will be used to expand the company's operational capacity. Here is the detailed breakdown:
| Purpose | Amount (RM million) | Percentage |
|---|---|---|
| Well intervention tools & equipment | 23.26 | 47.74% |
| New corporate office | 5.50 | 11.29% |
| Workforce expansion | 5.28 | 10.83% |
| Working capital | 4.54 | 9.32% |
| Engineer recruitment | 2.40 | 4.93% |
| Bank borrowing repayment | 2.84 | 5.83% |
| Listing expenses | Balance | ~9.86% |
The largest allocation (RM23.26 million) for purchasing well intervention tools and equipment within 36 months of listing demonstrates UAEB's commitment to enhancing their technical capabilities. This includes fishing tools, P&A equipment, and advanced sidetracking technology.
The RM5.50 million allocation for a new corporate office and RM5.28 million for workforce expansion reflect the company's growth plans. The additional RM2.40 million for engineer recruitment also aligns with its goal of introducing new well intervention solutions.
Financial Performance
Based on data reported by The Edge Malaysia, UAEB's financial performance for the financial year 2025 is as follows:
| Indicator | FY2025 |
|---|---|
| Revenue | RM36.95 million |
| Net Profit | RM6.98 million |
| Net Profit Margin | ~18.9% |
| Outstanding Purchase Orders | RM27.3 million |
A net profit margin of ~18.9% is quite healthy for an O&G services company, demonstrating UAEB's ability to command premium pricing for their niche expertise.
The company also holds outstanding purchase orders worth RM27.3 million, with projects scheduled for completion by February 2027. This provides reasonable short-term earnings visibility.
IPO Valuation
At the IPO price of 35 sen per share and a market capitalisation of RM192.5 million, the company is valued at a price-to-earnings (PE) ratio of approximately 27.6 times based on FY2025 net profit of RM6.98 million.
This PE of 27.6 times sits at the upper end of the valuation range for O&G services companies on the ACE Market. Investors need to assess whether this premium is justified given the company's niche expertise and post-IPO growth potential.
Shareholders & Management
United Asiapac Energy is wholly owned by Asiapac Holdings Bhd prior to the IPO. The ownership structure of Asiapac Holdings is:
- Ahmad Fadzuli Ali (Managing Director) - 80% stake in Asiapac Holdings
- Datuk Mat Noor Nawi (Executive Director) - 20% stake in Asiapac Holdings
After the IPO, Asiapac Holdings' stake in UAEB will decrease from 100% to 74.69%. Despite the dilution, both major shareholders will retain majority control of the company.
The absence of an offer-for-sale component means Ahmad Fadzuli Ali and Datuk Mat Noor Nawi are not selling any shares through this IPO. All proceeds raised will go directly into the company for corporate purposes - a positive signal indicating management's confidence in the business's long-term prospects.
Opportunities & Risks for Investors
Opportunities
- Niche expertise - UAEB operates in the well intervention segment requiring specialised skills, enabling better pricing power
- No offer-for-sale - All IPO proceeds go to the company, not existing shareholders' pockets
- Healthy orderbook - RM27.3 million in purchase orders provides earnings visibility until early 2027
- Strategic locations - Kemaman and Labuan are key O&G industry hubs in Malaysia
- Healthy margins - Net profit margin of ~18.9% demonstrates pricing power in their niche
Risks
- High PE - PE ratio of ~27.6x is elevated compared to the O&G services sector average
- Oil price dependency - Upstream exploration activity is closely tied to crude oil commodity prices
- Small company - Market capitalisation of RM192.5 million places it as a small-cap with potentially limited trading liquidity
- Geographic concentration - Operations focused solely in Malaysia, exposing it to local regulatory and policy risks
- Call-out model - Revenue depends on on-demand work (call-out basis), which can fluctuate with client activity
How to Apply for the United Asiapac Energy IPO
Interested investors can apply for this IPO through:
- ATM or internet banking platforms of appointed banks (typically Maybank, CIMB, Public Bank, etc.)
- Online applications through appointed brokers
- Manual forms available at bank/broker branches
Applications close on August 5, 2026, so investors need to act promptly. Ensure you have an active CDS account before applying.
Frequently Asked Questions (FAQ)
What is United Asiapac Energy's core business?
UAEB provides specialised well intervention services for the upstream oil and gas industry. This includes fishing services (retrieving stuck equipment from wells), plug and abandonment, sidetracking, and other upstream support services.
What is the IPO price?
The IPO price is set at 35 sen per share. Based on 550 million shares of enlarged capital, the market capitalisation is expected to be approximately RM192.5 million.
When is the listing date?
The listing is scheduled for August 19, 2026 on Bursa Malaysia's ACE Market. IPO applications close on August 5, 2026.
Is United Asiapac Energy Shariah-compliant?
UAEB's Shariah compliance status has not been confirmed as the company has not yet been listed. The list of Shariah-compliant securities is updated by the Securities Commission's Shariah Advisory Council in May and November each year. Investors will need to wait for the next review after listing.
Who is the underwriter?
TA Securities serves as the principal adviser, sponsor, underwriter, and placement agent for the United Asiapac Energy IPO.
How many shares are available for public application?
Of the 139.22 million IPO shares, only 27.5 million shares are allocated for public offering to Malaysian investors. The majority (101.72 million shares) are allocated through placement to selected investors.
Are existing shareholders selling their shares?
No. This IPO involves only the issuance of new shares without an offer-for-sale component. Existing shareholders are not selling their stakes through this IPO.
What is United Asiapac Energy's PE ratio at IPO price?
Based on the IPO price of 35 sen and FY2025 net profit of RM6.98 million, the trailing PE ratio is approximately 27.6 times. This is higher compared to the average for O&G services companies on the ACE Market.
Conclusion
The United Asiapac Energy IPO offers investors an opportunity to participate in a niche O&G well intervention services company specialising in fishing services and plug and abandonment. With RM48.73 million in IPO proceeds largely earmarked for capacity expansion, the company clearly has concrete growth plans. However, investors should weigh the relatively high PE valuation (~27.6x) and the risk of dependence on oil price cycles before making investment decisions.
If you are interested in investing in IPOs like this and other stocks on the market, the first step is to have the right investment account.
Open a CDS trading account via mahersaham.com/akauncds to start investing on Bursa Malaysia as well as international stock markets such as the US and Hong Kong.
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