KUALA LUMPUR (Nov 24): Listing bound E.A. Technique (M) Bhd is 'well-insulated' against the declining oil prices, said its Managing Director Datuk Abdul Hak.

E.A. Technique, which plans to float on Bursa Malaysia on Dec 11, has an initial public offering (IPO) of 15 million existing ordinary shares and a public issue of 114 million new ordinary shares.

When asked if the time is right to go public, Abdul Hak said timing is 'not a factor'. "I know you are referring to the declining oil prices, but we believe that our business is well-insulated," he assured that at the launch of the company’s prospectus launch.

"We do not only depend on the oil & gas business, but we also have port services and shipyard. So, we are quite covered in terms of our core businesses," he added.

With an IPO price of 65 sen, the 65.4% indirectly-owned firm of Kulim (M) Bhd aims to raise up to RM74.1 million from the IPO.

E.A. Technique is a 65.4% indirect subsidiary of Kulim, held through its wholly-owned subsidiary, Sindora Bhd.

A major portion of the proceeds will be utilised for the repayment of bank borrowings, capital expenditures and working capital.

"You never get wrong [being] in the energy sector. Everybody needs energy everyday," he remarked.

Some 25.2 million shares are made available for the investing public. Meanwhile, the company has allocated 78.8 million shares for private placement to institutional and selected investors.