Naim Cendera gets nod for unit’s listing on main board

KUCHING: Naim Cendera Holdings Bhd has obtained Securities Commission approval for the flotation of its 45%-owned oil and gas outfit Dayang Enterprise Holdings Bhd (DEHB).

Deputy managing director Dr Sharifuddin Wahab expects DEHB was expected to be listed on Bursa Malaysia main board in late April.
“DEHB is our vehicle to expand into the oil and gas (O&G) industry. The initial public offer (IPO) is expected to raise some RM120mil,” he told StarBiz yesterday.

Naim became the single-largest shareholder in DEHB after acquiring a 45% stake in August last year.

Dayang Enterprise has three wholly-owned subsidiaries: Dayang Enterprise Sdn Bhd, DESB Marine Services Sdn Bhd and Fortune Triumph Sdn Bhd.

Dayang Enterprise is principally involved in the provision of maintenance services for offshore topside structures, pipes and valves, electrical and instrumentation, fabrication operations, and hook-up and commissioning services for the O&G industry.

The main business of DESB Marine Services is in the chartering of marine vessels, including floating accommodation and catering. Meanwhile, Fortune Triumph provides rental equipment and machinery to various players in the O&G sector.

Dr Sharifuddin, also DEHB executive director, said proceeds from the IPO would be used to acquire a new marine vessel to provide floating accommodation and fund the company’s expansion into other fields.
He said the company, which now owned two marine vessels and a supply ship, was scouting for a new site to expand its fabrication business relating to hook up and commissioning services for the O&G industry.

“We are looking at doing maintenance work (for topside structures and others) overseas through Petronas and our existing customers. We have identified Vietnam and Myanmar,” he added.Dr Sharifuddin said DEHB had ongoing contracts worth RM627mil and was currently bidding for jobs worth nearly RM2bil.

“Having completed 23 contracts worth RM934mil and with an established track record, DEHB is confident of growing its order book substantially within the next 12 months.” He expected DEHB to contribute 15% to 20% of group profits from this year.

DEHB net profits jumped to RM28.9mil for the financial year ended Sept 30, 2007 from RM18.2mil the previous year.

Taken from The Star, Bizweek
Tuesday February 5, 2008