The group says that it has demonstrated ability to sustain profitability, and the proposed transfer onto the mainboard is timely and appropriate.

Oiltek International has appealed to transfer its listing onto the Mainboard of the Singapore Exchange S68 (SGX) from the Catalist board, according to a bourse filing on Feb 17. 

The company, which is a solutions provider in the vegetable oils industry, says that the listing on the Mainboard will enhance long-term value for shareholders of the company.

Since its listing on the Catalist board on March 3, 2022, the group says that it has undergone substantial growth and expanded its global footprint. It has designed, built, and commercialised plants in more than 35 countries in five continents. 

The group says that it has grown its net profit attributable to shareholders from RM9.0707 million for FY2021 to RM29.643 million for FY2024. 

“As such the company has clearly demonstrated its ability to sustain its profitability. Given the company’s market position, stage of growth and relative stability, the directors are of the opinion that the proposed transfer is timely and appropriate,” reads the release. 

Oiltek adds that listing on the Mainboard of the SGX will provide it with greater visibility and recognition in capital markets and among public investors which could result in better liquidity and improve the performance of its shares. 

The company also believes that the Mainboard listing will provide it with a wider platform and greater opportunities for future fund raising and give it access to a larger and more diverse investor market. 

The proposed transfer is subject to the in-principle approval of the SGX, the company satisfying all relevant listing requirements applicable to the proposed transfer set out in Rule 408 of the listing manual of the SGX, section B: Rules of Catalist, and the approval of the shareholders obtained through a special resolution at an extraordinary general meeting to be convened. 

Shares in Oiltek closed 2 cents higher or 1.709% up at $1.19 on Feb 17.