KUALA LUMPUR: Primary underwriter for Vastalux Energy Bhd, KAF Investment Bank Bhd, which has been disposing of its shares in the beleaguered company via the open market since July 27, 2009, disposed of another 1.46 million shares in the company recently.

Its latest disposals on March 18 and 19, according to filings with Bursa Malaysia, still leave it with 32.05 million shares. The stock had closed at 12 sen on both days.

According to Bloomberg data, KAF is Vastalux’s second largest substantial shareholder with a 15.54% stake as at March 19, 2010 and is the only institutional investor in the oil and gas field services company. It originally held a 16.95% stake comprising 34.95 million shares in Vastalux as at July 29, 2009.

The company’s managing director Nor Sabri Hamzah is the largest shareholder, with an 18.65% stake. In February, his stake was at 20.3% comprising 41.95 million shares. He had 63 million shares in Vastalux as at the end of last year.

The investment bank was the primary adviser, managing underwriter and placement agent for Vastalux when it undertook its listing exercise on the Second Board of Bursa Malaysia in September 2008.

Vastalux’s initial public offering at 25 sen per share only saw an overall subscription rate of 5.93% of 12 million shares made available to the public.

The company’s shares saw its 52-week high on June 17, 2009 at 70 sen per share, while its 52-week low was on March 18, 2010 at 10 sen a share. The stock added one sen to 11.5 sen yesterday with 723,600 shares done.

In January, Vastalux, which provides onshore and offshore oil and gas services, minor fabrication works and marine vessel charter, announced that it had had its Petroliam Nasional Bhd licence suspended by the national oil company and had put forth an appeal for the reinstatement of the licence.

At its listing on Sept 12, 2008, Vastalux was reported to have RM500 million worth of contracts in hand for completion over five years. The company posted a net loss of RM51.44 million in its financial year ended Dec 31, 2009, versus a net profit of RM17.56 million in FY08.


This article appeared in The Edge Financial Daily, March 24, 2010.