Singapore-based OMS Energy raises $43m from Nasdaq debut
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OMS Energy listed 3.7 million shares at US$9 each on May 13 in the IPO.
PHOTO: REUTERS
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SINGAPORE – Singapore-based OMS Energy Technologies has raised US$33.3 million (S$43.2 million) from its initial public offering (IPO) on New York’s Nasdaq exchange.
OMS, which makes surface wellhead systems and pipes used in oil exploration and production, listed 3.7 million shares at US$9 each on May 13 in the IPO. The shares were trading at around US$7.74 on May 15.
The US$9 price valued the company at US$348 million.
The eventual offer size and price were pared from the original intent to list 5.6 million shares at between US$8 and US$10.
The company intends to use the IPO proceeds for research and development, marketing and sales, compliance and governance and working capital.
OMS indirectly owns interest in subsidiaries in Singapore, Malaysia, Brunei, Saudi Arabia, Thailand and Indonesia.
It has 11 manufacturing facilities scattered across oil and gas service hubs from the Asia-Pacific to the Middle East and North Africa.
In January 2024, OMS entered into a 10-year supply agreement with Saudi Aramco, the national oil company of Saudi Arabia.
OMS estimates that the agreement, which involves Saudi Aramco buying certain products, will generate revenue of around US$200 million a year.
Saudi Aramco accounted for 71 per cent of OMS’ total revenue as at Sept 30, 2024.
OMS made a net profit of US$82.09 million on a turnover of US$163.27 million for the period June 16, 2023 to March 31, 2024, noted its prospectus.
It also said that while Aramco remains a key strategic partner, OMS is “actively working to diversify” its customer base.
“Whilst we intend to focus on our principal business activities in the sales of high-quality products for oil drilling and exploration, we also plan to explore opportunities to collaborate with suitable partners in related industries in the South-east Asian region,” noted the prospectus.
Mr How Meng Hock, the firm’s executive director, chairman and chief executive, owns 61.78 per cent of OMS Energy following the IPO.
The OMS listing in New York highlights the struggle Singapore has had to attract companies to go public in recent years, with many firms opting to go to the US, drawn by hopes of strong valuations, liquidity and proximity to their target markets.
This prompted the Monetary Authority of Singapore to review the country’s equity markets
One proposal is to invest $5 billion in funds focused on the local equity market.
The SGX RegCo has also proposed regulatory changes towards a more disclosure-based regime, a stance investment bank Morgan Stanley sees as “key positive drivers” for the market.
