INTEGRATED process and renewable energy solutions provider Oiltek International's initial public offering (IPO) on the Catalist board was subscribed at 4.3 times for S$0.23 per share.

At the close of application at 12 pm on Mar 1, there were 767 applications for the 500,000 public tranche. The tranche was 112.9 times subscribed with applicants applying for an aggregate of 56.4 million public offer shares.

The 22 million placement shares were all subscribed, with interest received of about 39.3 million shares. The placement was about 1.8 times subscribed.

"The positive demand from both retail and institutional investors indicates a clear signal of investors' confidence in Oiltek's business model and growth potential," said Henry Yong Khai Weng, executive director and chief executive officer, Oiltek.

Post-listing Oiltek will be spun off from Catalist-listed Koh Brothers Eco Engineering. Currently its order book stands at about RM173.1 million (S$56 million), with orders expected to be fulfilled over the next 18 months. Barring any unforeseen circumstances, Oiltek's overall revenue should increase in line with the orderbook.

Oiltek currently does not have a dividend policy, but the board intends to recommend and distribute dividends of not less than 40 per cent of its net profit attributable to shareholders of the company for FY2022 and FY2023. This is to reward shareholders for participating in Oiltek's growth.

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"This is the beginning of our new corporate journey. With an acceleration of global trends shifting towards sustainability, we are incredibly excited about the opportunity to create value for all stakeholders by capitalising on the rising growth of the renewable energy sector," said Yong.

The listing and trading of Oiltek shares will commence at 9 am on Mar 3.