Oiltek International Unveils Strategic Developments and Key Project Updates Ahead of 2026 AGM

Key Highlights for Investors

• Bonus Issue Implemented in 2025: Oiltek completed a significant bonus issue to enhance share liquidity and shareholder value.
• Progress on US\$350 Million Sustainable Aviation Fuel (SAF) Project: Heads of agreement signed with Bioseaga Industries Sdn Bhd for a major SAF facility in Sabah.
• Potential Secondary Listing on Bursa Malaysia: Preparatory work underway, with the aim to broaden investor base and improve share liquidity.
• Robust Corporate Governance and Risk Management: Details on board structure, committee effectiveness, and appointment of alternate director disclosed.

1. Shareholder Concerns on Stock Split and Liquidity

A shareholder queried whether Oiltek plans a stock split due to the high cost of shares potentially dampening market participation. The company clarified that on 15 May 2025, it completed a bonus issue of two shares for every existing share—a move that reflects confidence in growth prospects and a strong commitment to enhancing shareholder value and market liquidity. Oiltek continues to actively review its capital structure, factoring in share price, market conditions, and corporate strategy. Any further actions will be announced in compliance with SGX requirements.

2. Major Contract Negotiations: US\$350 Million SAF Facility in Sabah

This development is highly price sensitive and could significantly impact Oiltek’s valuation and investor sentiment.

• On 6 April 2026, Oiltek announced a heads of agreement with Bioseaga Industries for the construction of a sustainable aviation fuel (SAF) production facility in Sabah, Malaysia, with a planned capacity of 300 metric tonnes per day and an estimated contract value of US\$350 million. This is highly significant compared to the group’s current order book of RM350 million.
• The negotiation is led by Executive Director and CEO Mr. Henry Yong Khai Weng, with board oversight and established governance and risk management processes. The parties aim to sign a definitive agreement within six months, subject to financing, regulatory approvals, land rights, and final technical and commercial terms.
• Investors should note a previous heads of agreement with PT Kilang Pertamina Internasional expired without a final deal, highlighting execution risks.
• The Audit and Risk Committee identified key risks: project execution, financing, regulatory approvals, and geopolitical issues, all of which may affect costs and timelines. Oiltek intends to mitigate these through experienced project management, recruitment where necessary, and ongoing monitoring.

3. Secondary Listing on Bursa Malaysia: Strategic Rationale and Status

This initiative could increase share liquidity and valuation, attracting new investors and potentially impacting share price.

• Oiltek is actively pursuing a secondary listing on the Main Market of Bursa Malaysia. The rationale includes widening the investor base, increasing liquidity, and enabling access to additional fundraising avenues. This is not in response to any SGX listing limitations, but rather leverages Oiltek’s established presence in Malaysia and the interest of local investors in the vegetable oils and renewable energy sectors.
• Preparatory work is ongoing with professional advisors appointed. The listing is subject to regulatory approvals and market conditions. Costs will be fully disclosed in the offer documents.
• Management states the initiative is not dependent on short-term SGX trading momentum, and existing governance processes are expected to handle the additional compliance obligations without detracting from core business focus.

4. Corporate Governance: Board Composition and Appointment of Alternate Director

• The board committees comprise five members each (two non-executive, three independent), ensuring independent oversight and objectivity. All six directors may attend meetings, but only committee members deliberate and decide. Non-executive sessions are held for independent judgement.
• Ms. Tay Tze Wen was appointed as alternate director to Mr. Koh Keng Siang due to his frequent travel and business commitments. The board and nominating committee assessed this as justified, ensuring the company continues to benefit from Mr. Koh’s experience while maintaining effective governance.

Investor Takeaways and Potential Price Sensitivity

• The heads of agreement for a US\$350 million SAF facility is the most significant and potentially price-moving news. Progress or setbacks here could materially affect Oiltek’s valuation and market sentiment.
• The proposed secondary Bursa Malaysia listing, if successful, could enhance liquidity and valuation, especially as the company takes on larger projects.
• The company has demonstrated proactive capital management, strong governance, and risk controls—factors that may reassure investors and protect value.
• Past projects and board structures indicate a readiness to manage complex, large-scale contracts—an important confidence factor as Oiltek pursues the SAF project.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. The information is based on company disclosures as of April 2026 and may be subject to change.

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