Oiltek to ‘actively review’ capital structure after stock-split query

[SINGAPORE] Agritech firm Oiltek said on Wednesday (Apr 22) that it would continue to “actively review” its capital structure to support market participation, after a shareholder asked if it had plans to effect a stock split.

The shareholder pointed out the current high cost of Oiltek’s shares may “dampen market participation and trading momentum”. The counter has soared over 250 per cent in the year to date, likely propelled by rising oil prices due to the Middle East conflict.

Oiltek responded that it had completed a bonus issue of two bonus shares for every one existing ordinary share on May 15, 2025.

The company said the review of its capital structure would take into consideration share price performance, prevailing market conditions and overall corporate strategy.

The company was responding to questions from shareholders and the Securities Investors Association (Singapore), or Sias, ahead of its Apr 28 annual general meeting.

Proposed secondary listing in Malaysia

Oiltek said that its proposed secondary listing on Bursa Malaysia, announced on Jul 21, 2025, was a growth-oriented move that was not dependent on share price performance or trading momentum on the Singapore Exchange (SGX).

This was in response to an Sias question on whether Oiltek’s management still saw a strong case for a secondary listing on Bursa Malaysia, in light of the company’s current trading momentum and valuation on SGX.

The company also said the proposed listing was not a response to any limitations of its SGX listing.

In reply to an Sias question on the rationale for pursuing the Bursa Malaysia listing, Oiltek said the move would widen its investor base.

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This would potentially increase liquidity of the company’s shares and enhance its value through separate trading platforms, as well as enable it to tap additional platforms for future fundraising.

As its principal operating subsidiary has been based in Malaysia for 45 years, the group said this made Bursa Malaysia a “natural complementary market” for its shares.

It added that the Malaysian bourse would also serve as a “relevant investor base”, as Malaysian investors are “generally familiar with the vegetable oils and renewable energy sectors”.

“The proposed secondary listing also provides longer-term flexibility for capital raising, particularly as the company undertakes larger-scale projects and explores commercially viable joint-venture opportunities,” Oiltek said.

On a question posed by Sias regarding the status of the proposed move, Oiltek said the listing was subject to regulatory approvals, satisfactory completion of ongoing preparatory work and its board’s assessment of “prevailing market conditions”, among others.

On Monday, Oiltek crossed S$1 billion in market capitalisation, becoming first and only stock originally from the Catalist board to do so and dwarfing its parent Koh Brothers Eco Engineering, which had a S$481.9 million market cap as at Wednesday.

This comes as Oiltek’s share price has more than tripled from its closing price of S$0.68 on the last trading day of 2025.

The stock closed Wednesday 0.8 per cent or S$0.02 lower at S$2.44.