Vastalux Energy Berhad Launches Prospectus In Conjunction With Its Listing On The Second Board Of Bursa Malaysia

Vastalux Energy Berhad ,an onshore and offshore multidisciplinary construction engineering company for the oil and gas has launched its prospectus on the 22 August 2008 en route to its listing on the Second Board of Bursa Malaysia Securities Berhad. Present to officiate the launch were YBhg Tan Sri Dato' Zainol Abidin Abd Rashid Chairman of Vastalux Energy Berhad, YBhg Datuk Khatijah Ahmad Managing Director of KAF Investment Bank Berhad and Mr Mohamed Nor Bin Abdul Rashid Executive Vice Chairman of Vastalux Energy Berhad.The Group's core activities include commisioning services,onshore facilities maintainance services,onshore hook-up,onshore construction of oil and gas plants,minor fabrications,offshore underwaters services, offshore topside and charter of marine vessel.Vatalux IPO entails a public issue of 57,232 million new ordinary shares of RM0.25 each,an offer for sale of 26 million ordinary shares of RM0.25 each,as well as a restricted offer for sale of 7 million ordinary shares of RM0.25 each at IPO price of RM0.75 per ordinary share.Out of the 57.232 million public issue shares,12 million shares would be made available to the Malaysian public.4,240 million to Vastalux's eligible senior management,business associates,directors and promoters of VEB Group and 40,992 million for placement to selected investors.The total gross proceeds to be raised from this IPO is approximately RM52.3 million which the company intends to utilize amongst others as working capital for its business and market expansion locally and overseas,which includes Indonesia and Vietnam and for retirement of bank borrowings. Furthermore under it's capital expenditure plan,VEB plans to utilize the IPO proceeds to develop and construct new fabrication yard and yard facilities in addition to the Group's three yards in Kemaman,Labuan and Bintulu.VEB Group also plans to acquire additional marine vessels to add to the vessel they currently own,the MV Vasta Jati.

In his speech, Vastalux's Executive Vice Chairman and co-founder,Mr. Mohamed Nor bin Abdul Rashid said that the company 's listing comes at the right time as it will allow the company to move forward in its expansion and take full advantage of the major increase in oil exploration and production activitiess which are being driven by the high demand and high prices for the commodity.He added, There are many factors that points to a very positive outlook for oil and gas service companies such as Vastalux and we have every reason to feel positive about our listing and our future growth prospects as Vastalux is well-poised to benefit greatly from the major developments in oil and gas industry.According to the Ninth Malaysian Plan,for the period of 2006-2010,a total of RM43.8 billion has been allocated for the development of upstream and downstrem segments of the oil and gas industry.Furthermore Vastalux's core business is expected to grow at a rate of 8-10% over the next five years.This growth rate is very positive considering that in 2007 alone,Malaysia's spending for the upstream oil and gas sector has already amounted to RM19.2 billion.Currently,Vastalus boasts an impressive order book with secured contracts worth RM900 million until 2010 and is continuously bidding for new contracts from various clients.The Group has performed well financially,posting an annual revenue growth rate of 42.7% over the past five years.For financial year ended 31 December 2007 the Group recorded net profit of approximately RM10.7 million on revenue of approximately RM143.2 million,which represented a 23% increase from its FY06 net profit.Datuk Khatijah Ahmad,Managing Director of KAF Investment Bank Berhad,the Principal Adviser,Managing Underwriter and Sole Placement Agent to Vastalux for its IPO,expressed her confidence that with Vastalux's experience,strong track record and service excellence will poised to bring the Group to greater heights upon its listing on Bursa Malaysia.