PETALING JAYA: United Asiapac Energy Bhd is expected to benefit from rising demand for specialised fishing and plug and abandonment (P&A) services, with MBSB Research assigning the upcoming listing a fair value of 39 sen.
The fair value represents an 11.4% premium to United Asiapac’s initial public offering (IPO) price of 35 sen, although the research house has not assigned a rating to the stock. “United Asiapac operates in a niche segment of well intervention,” MBSB Research said.
United Asiapac is a 100% bumiputra-owned local oilfield services company scheduled to list on the ACE Market on Aug 19. The research house said Malaysia’s fishing and P&A services market is projected to expand to RM444mil by 2028 from RM165mil in 2024, representing a compound annual growth rate of 28.1%.
“This highlights a strong tailwind for companies operating directly in downhole intervention and well retirement,” it said.
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