KUALA LUMPUR, April 15: In a show of investors’ confidence, upstream oil and gas service provider, Dayang Enterprise Holdings Berhad (DEHB) public issue of 17.6 million new shares of RM1.45 per share has been oversubscribed by 839 percent.

According to Tengku Yusof Tengku Ahmad Shahruddin, Managing Director of DEHB, the public issue, which opened for subscription on March 31, was oversubscribed by 8.39 times upon closing of the offer period on April 11.

Dayang received a total of 23,765 applications for 165 million shares versus 17.6 million shares offered.

Said Tengku Yusof, “We are overwhelmed with the response received on the public issue and the oversubscription showcases investors’ confidence in DEHB. The feedback we received is testament that the IPO market in Malaysia is still very attractive and strong for public issue.

He went on to say that all of the new equity shares offered totaling 85.87 million have been fully placed out and subscribed. These include the 17.6 million public shares, 8.5 million shares to DEHB’s eligible directors, employees and business associates, and 59.7 million shares to identified investors.

As to the date of the listing, Tengku Yusof said after conferring with the board of directors, DEHB has decided to make its debut on the Main Board of Bursa Malaysia Securities on April 24.

Upon its floatation on the Main Board, the company will have a market capitalization of approximately RM510.4 million, based on the IPO price and enlarged issued and paid-up share capital of 352 million shares.

DEHB is set to raise some RM124.5 million from the IPO exercise of which 41 percent or RM51.45 million of the proceeds will be used to partly finance its new vessel and purchase new machinery and equipment, while the rest of the proceeds, some RM60 million will be used to fully redeem the company’s Islamic Medium Term Notes.

DEHB provides various products and services for the upstream sector of the oil and gas industry and these include offshore topside maintenance services, fabrication operations, offshore hook-up and commissioning and charter of marine vessels.

To date, it has completed contracts totalling RM934 million and has an order book worth approximately RM627 million which will last for the next three years. DEHB has tendered for various contracts amounting to some RM595 million.

The 27-year old company counts Petronas Carigali, Sarawak Shell, Sabah Shell, ExxonMobil and US-based Murphy Oil as its clients and had recorded revenue of approximately RM127.1 million for the financial year ending 30 September 2007.

DEHB is ranked top ten amongst companies that undertake offshore topside maintenance services, and hook-up and commissioning services out of 59 companies in the country.