Uzma to expand overseas ops

OIL and gas services provider Uzma Bhd expects half of sales to come from overseas by 2011, compared with 21.5 per cent currently, as it expands its international presence.

Uzma made RM128.2 million revenue last year.

"We also want to expand our current international offices, such as the ones in Bangkok, Jakarta, Doha and Perth, so that they can provide all the services," chief executive officer and managing director Datuk Kamarul Redzuan Muhamed said after the launch of Uzma's prospectus in Kuala Lumpur yesterday.

The launch was officiated by Second Finance Minister Tan Sri Nor Mohamed Yakcop.

Although overseas revenue contributes just over one-fifth of total sales, it accounts for 42 per cent of gross profit.

"Most international projects are gas geoscience and reservoir engineering services, which offer better margins," Kamarul said.

Uzma was set up in 2000. It helps oil companies identify potential oil and gas resources and estimate how much can be recovered as well as advises clients where and how to drill.

It also helps oil companies extract more oil from their reservoirs.

Uzma, which is likely to be listed on July 21, expects to raise RM34.2 million from the initial public offering (IPO).

Proceeds will be used to set up a geological laboratory and buy computers as well as for working capital for its expansion in India and North Africa.

The IPO involves a public issue of 18 million new shares of 50 sen each and an offer for sale of 10 million existing shares at RM1.90 a share.

Out of the public issue, a third will be made available to the public, nine million shares to eligible directors and employees, and three million shares placed out to selected investors.