Oiltek applies to transfer listing to SGX mainboard

VEGETABLE and edible oil engineering process company Oiltek International has applied to move its listing from the Singapore Exchange (SGX) Catalist board to the mainboard.

In a bourse filing on Monday (Feb 17), the company said that the move would enhance its image both locally and overseas as public investors accord a premium to mainboard-listed companies over Catalist-listed ones.

Oiltek added that the shift could result in better liquidity and improved share performance as the company gains greater visibility and recognition in capital markets.

Furthermore, its directors believe that a mainboard listing will provide the company with a wider platform and greater opportunities for future fundraising. It will also give Oiltek access to a larger and more diverse investor market, including institutional and overseas investors.

The company noted that it has grown consistently in the past four years, with net profit standing at RM29.6 million (S$9 million) in FY2024, versus RM9.7 million in FY2021.

“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,” Oiltek said.

Since the company was listed on the Catalist board since Mar 3, 2022, it has designed, built and commercialised plants in more than 35 countries.

The proposed transfer is subject to approval by SGX, as well as Oiltek meeting the necessary listing requirements and receiving approval from its shareholders via a special resolution at an extraordinary general meeting.

Oiltek shares rose 1.7 per cent or S$0.02 to S$1.19 on Monday before it called for a trading halt at 10.47am. The announcement of its mainboard application was released after market close.