Koh Brothers Eco jumps 26.2% as unit Oiltek crosses S$1 billion market value
Koh Brothers Group shares are also up more than 23%
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[SINGAPORE] Shares of Koh Brothers Eco Engineering (KBE) jumped as much as 26.2 per cent on Monday (Apr 20), after majority-owned unit Oiltek crossed S$1 billion in market capitalisation.
As at 11.09 am, the counter had climbed S$0.033 to S$0.159.
KBE owns 68.1 per cent of Oiltek, but is valued at just about S$355 million. Its stake in Oiltek is worth more than twice as much, excluding the S$72 million of cash KBE held as at end-2025.
Shares of ultimate parent company Koh Brothers Group (KBG) also soared, adding S$0.095 to rise 23.2 per cent to S$0.505 at the same time.
With its recent gains, which were likely propelled by rising oil prices due to the conflict in the Middle East, Oiltek has now become the first and only Catalist-origin stock that has a market cap exceeding S$1 billion. It moved to the mainboard in June 2025.
Its market capitalisation dwarfs mainboard-listed KBG’s market cap of about S$169.1 million.
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Oiltek on Apr 6 also announced plans to jointly develop a US$350 million sustainable aviation fuel biorefinery in Sabah, Malaysia, with Brunei-based renewable fuel company BioSeaga Industries.
This prompted CGS International, UOB Kay Hian and Phillip Securities to revise their target prices for Oiltek to a range from S$2.72 to S$3.38.
As a result, some KBG shareholders asked for a distribution of Oiltek shares in-specie upstream to KBE shareholders, but KBG last week declined to put this request to a vote.
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This followed a similarly proposed shareholders resolution in 2025 that was tabled “to promote open engagement with shareholders”, the board said.
In a commentary published in The Business Times on Monday, Chew Sutat argued that minority investors in companies such as KBG and KBE have to stay patient and hope the companies eventually pay out their hidden wealth, or wait for the rest of the market to realise these stocks are a bargain and start buying them, which would finally push the price up.
Chew is chairman of management consulting firm Shan De Advisors and former executive vice-president and senior managing director at the Singapore Exchange.
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