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Koh Brothers unit Oiltek presents prospectus for catalytic IPO

SING -ORE (THE BUSINESS TIMES) – Oiltek International, a subsidiary of Koh Brothers Eco Engineering, has submitted its preliminary public offering (IPO) to the Catalist Board of the Sing -ore Exchange (SGX).

Koh Brothers Group and Penta-Ocean Construction are the majority shareholders of Koh Brothers Eco Engineering with 54.3 and 28.8 percent respectively.

Oiltek International, a solution provider in the oil and fat industry, has divided the main business areas into its refining segment for edible and non-cooking oil, the segment for renewable energies and the segment for product sales and trading. In addition, the company has 570 plants in more than 30 countries on five continents.

The company aims to raise funds to further develop new and existing geogr -hic markets. Although Malaysia and Indonesia will remain its major markets, it wants to explore palm oil markets in South Asia, Africa, and Latin America.

In addition, the focus is increasingly being placed on the area of ​​renewable energies. One way to do this is to support sustainable palm oil cultivation with producers who adhere to the standards of the Roundtable on Sustainable Palm Oil.

The company will also seek to further develop its process technology and renewable energy c -abilities through research development, joint ventures and strategic alliances.

Oiltek International said it will seek to generate recurring revenue by expanding its business through investments, mergers and acquisitions, joint ventures and strategic alliances in terms of synergistic c -abilities, c -abilities, technologies and operations. There are currently no agreements in place regarding such corporate relocations.

In the first half of the year ended June 30, 2021, the company’s sales increased by 13.2 percent to 47.2 million RM (15.3 million SGD) from 41.7 million RM in the previous year. However, net profit fell by 11.2 percent to RM4.4 million, from RM4.9 million in the previous year.

Oiltek International attributed this to increased cost of sales, which rose by 15.2 percent to 37.2 million RM in the same period – corresponding to the increase in sales.

The company’s equity as of June 30, 2021 was RM 33.5 million.

Subject to various factors, the directors have also stated that they intend to recommend and distribute dividends of at least 40 percent of the company’s net income for FY2022 and FY2023.

Koh Brothers Eco Engineering announced in January 2020 that it would look into the spin-off of Oiltek International.

Koh Brothers Eco Engineering shares closed at five cents, up 0.1 cents, or 2 percent on Friday (December 31) prior to the announcement.

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