By Sharen Kaur
KUALA LUMPUR: The listing of Weststar Aviation Services Sdn Bhd to raise RM1.5 billion for global expansion is still on, albeit a slight delay in view of the current oil prices, said founder Tan Sri Syed Azman Syed Ibrahim.
Syed Azman, popularly known as the "AP King", told Business Times he has no qualms about listing the company this year but the current oil price, which is hovering around USD43 (RM159) per barrel, is slowing down business in the oil and gas (O&G) sector.
Weststar Aviation, a unit of the Weststar Group, provides offshore helicopter transport for O&G firms. It is the largest helicopter operator in Southeast Asia, with operations in Malaysia, Thailand and Morocco.
It operates 37 helicopters and has an order book of around RM10 billion.
Its sister company, Weststar General Aviation Sdn Bhd, operates six helicopters, mainly for general charter and use by various industries, which includes media and timber, and government agencies.
Business Times on Tuesday reported that Weststar Aviation, partly owned by United States private equity firm KKR, is reviewing its listing plan because of the low oil price and market uncertainties.
The company is looking at an initial public offering (IPO) in the third or fourth quarter of this year.
"We do not have any issues with our business. We are cash-flow positive.
Our IPO is mainly for our global expansion and to pare down debt, which is at around RM1 billion. But with the current market conditions and weak oil price, it will be difficult to launch an IPO and to expand.
"Of course our business has nothing to do with the oil price as we provide services. We are in the business of moving people to and from oil rigs, sometimes involving more than 200km. If our clients are not drilling new fields or increasing their production, there won't be any business for us.
"The market is weak at the moment, which is why we are not going for an IPO now. It is wrong timing.
"Many other companies have also deferred their listing plans. Perhaps everyone is waiting to see how the market is going to react when Malakoff (Corp Bhd) goes for listing this year. Our IPO plan is still on, it is just a matter of timing," he added.
Weststar Aviation is currently valued at about RM4 billion.
Syed Azman said the company had tendered for new jobs globally, valued at more than USD200 million (RM740 million), with the focus on Indonesia and Africa.
KUALA LUMPUR: The listing of Weststar Aviation Services Sdn Bhd to raise RM1.5 billion for global expansion is still on, albeit a slight delay in view of the current oil prices, said founder Tan Sri Syed Azman Syed Ibrahim.
Syed Azman, popularly known as the "AP King", told Business Times he has no qualms about listing the company this year but the current oil price, which is hovering around USD43 (RM159) per barrel, is slowing down business in the oil and gas (O&G) sector.
Weststar Aviation, a unit of the Weststar Group, provides offshore helicopter transport for O&G firms. It is the largest helicopter operator in Southeast Asia, with operations in Malaysia, Thailand and Morocco.
It operates 37 helicopters and has an order book of around RM10 billion.
Its sister company, Weststar General Aviation Sdn Bhd, operates six helicopters, mainly for general charter and use by various industries, which includes media and timber, and government agencies.
Business Times on Tuesday reported that Weststar Aviation, partly owned by United States private equity firm KKR, is reviewing its listing plan because of the low oil price and market uncertainties.
The company is looking at an initial public offering (IPO) in the third or fourth quarter of this year.
"We do not have any issues with our business. We are cash-flow positive.
Our IPO is mainly for our global expansion and to pare down debt, which is at around RM1 billion. But with the current market conditions and weak oil price, it will be difficult to launch an IPO and to expand.
"Of course our business has nothing to do with the oil price as we provide services. We are in the business of moving people to and from oil rigs, sometimes involving more than 200km. If our clients are not drilling new fields or increasing their production, there won't be any business for us.
"The market is weak at the moment, which is why we are not going for an IPO now. It is wrong timing.
"Many other companies have also deferred their listing plans. Perhaps everyone is waiting to see how the market is going to react when Malakoff (Corp Bhd) goes for listing this year. Our IPO plan is still on, it is just a matter of timing," he added.
Weststar Aviation is currently valued at about RM4 billion.
Syed Azman said the company had tendered for new jobs globally, valued at more than USD200 million (RM740 million), with the focus on Indonesia and Africa.
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