Asia/Pacific News
New Malaysian Player to Enter the Bunker Business
Malaysian industrial services company Raya International Bhd (Raya) recently indicated it is diversifying into the oil bunkering business.
Local media Friday reported Kuala Lumpur-listed Raya filed stock exchange documents indicating it will float a 12.5 percent stake in the company, by issue 20.5 million shares, to fund the expansion into bunkering.
The float is expected to raise approximately RM4.15 million ($1 million); the funds will be "mainly for the purchases of marine gas oil from Singapore and local suppliers."
The report notes that on December 29, 2015, a Raya subsidiary Selatan Bunker (M) Sdn Bhd signed a partnership agreement with Tumpuan Megah Development Sdn Bhd to "work toward the development of bunkering services for marine fuel in Pasir Gudang, Johor."
Raya International is an investment holding company who currently does not have links with the bunker or maritime industries.
According to the media report the share float is part of a long-term strategy on the part of Raya to diversify into businesses "with growth prospects instead of depending solely on its existing business in trading of air filtration [systems and services]."
The proposed diversification is expected to eventually contribute 25 percent or more in net profit of the group.
Last month Ship & Bunker reported that Selatan Bunker will provide technical and marketing expertise for the venture.
