Reservoir Link Is Considering a Move to the Main Market

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Listed on the ACE Market Reservoir Link Energy Bhd has sought to shift its listing to Bursa Malaysia’s Main Market, if it meets the required earnings track record.

The oil and gas well services company stated in a filing with the exchange on Tuesday that the proposed transfer is subject to approval by the Securities Commission Malaysia, Bursa Securities, shareholders, and any other applicable authorities.

Additionally, the corporation must maintain a public shareholding spread of at least 25%, with at least 1,000 public shareholders holding at least 100 shares apiece.

The company stated that it has satisfied the standards for a transfer to the Main Market, which include an aggregate profit after tax (PAT) of at least RM20 million for three to five consecutive financial years, including at least RM6 million in the most recent financial year.

Reservoir Link stated that it generated a profit after tax (PAT) of RM10.8 million for the fiscal year ended December 31, 2020 (FY20), and an aggregate profit after tax of RM23 million for the previous three fiscal years (FY18 to FY20).

Additionally, the company stated that it is in a sound financial position with no accumulated losses, as evidenced by its most recent audited consolidated statement of financial position for FY20, which shows current assets of RM52.8 million and liabilities of approximately RM14.6 million, representing a current ratio of 3.6 times and cash and short term deposits of RM32.6 million.

According to Reservoir Link, the effort will enhance the company’s reputation and prestige, as well as increase the group’s visibility among investors, particularly institutional investors.

The exercise is planned to conclude in the first half of 2022, barring any unforeseen events.

Additionally, the group — which began trading on Bursa ACE Market on July 15, 2020 — stated that the proposed transfer is timely and favourable to the company’s future growth and potential to generate additional capital for expansion.

Reservoir Link’s shares decreased two sen or 3.25 percent to 59.5 sen on Tuesday, valuing the company at RM172.81 million. However, the stock has increased 56.58 percent year to date from 38 sen per share.

Published by Zack Baharum

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