BUOYANT over its prospect, Rakuten Trade has rated ACE Market-bound United Asiapac Energy Bhd (UNIPAC) a “buy” with a fair value of 50 sen over its 35 sen initial public offering (IPO) price premised on the group’s (i) expansionary plans; (ii) margin expansion; and (iii) strong PETRONAS credentials.
Based on 15x price-to-earnings ratio (FBM Small Cap PER) over the group’s FY5/2027F earnings per share (EPS), the research house foresees oil and gas (O&G) service provider with focus on well intervention solutions for the upstream segment as capable of maintaining a healthy balance sheet moving forward.
“With net gearing of 0.09x as of its FPE (financial period ended) February 2026, the group is poised to achieve a net cash position with its IPO proceeds post listing,” projected Rakuten Trade vice president (equity research) Thong Pak Leng in a recent IPO Note.
“With majority of the IPO proceeds intended to support business expansion, we expect UNIPAC to register core PATMI (profit after tax and minority interest) of RM13.5 mil and RM18.2 mil for FY5/2026 and FY5/2027.”
The tentative listing date for UNIPAC which aims to raise RM48.73 mil is Aug 19.
‘Healthy near-term revenue visibility’
Rakuten Trade is further bullish on UNIPAC aiming to grow its revenue by securing more contracts from existing and new upstream operators through its expanded equipment fleet, experienced technical workforce and comprehensive PETRONAS and PETROS licences.
“Greater equipment ownership is expected to improve service responsiveness and turnaround time, thus strengthening its competitive position while supporting higher margins,” asserted the research house.
“The introduction of new well intervention services are also expected to deepen customer relationships and create cross-selling opportunities across fishing, P&A (plug and abandonment), side-tracking and other specialised intervention services.”
As it is, UNIPAC plans to drive future growth by expanding its revenue-generating capacity using its IPO proceeds.
The group will invest RM23.26 mil to acquire additional well intervention equipment, enabling it to undertake more projects, reduce reliance on rented tools, improve mobilisation efficiency and enhance margins.
It also intends to recruit additional technical and commercial personnel, introduce new well intervention solutions, strengthen working capital and establish a new corporate office to support its expanding operations.
The group is licensed by both PETRONAS and PETROS, thus enabling it to undertake projects across Peninsular Malaysia, Sabah and Sarawak.
“As of end-February 2026, UNIPAC had secured approximately RM61.1 mil in purchase orders, of which RM27.3 mil remained unrecognised and is expected to be delivered through February 2027, hence providing healthy near-term revenue visibility,” reckoned Rakuten Trade.
UNIPAC’s core business comprises of fishing services which involves retrieving stuck or lost equipment from O&G wells as well as P&A services which permanently seal depleted wells in accordance with environmental and regulatory requirements.
Additionally, the group also provides side-tracking and other specialised well intervention services with the support of proprietary equipment and skilled manpower.
Its services span the entire hydrocarbon well lifecycle from drilling and production to eventual well decommissioning, thus making well intervention an essential and recurring component of the group’s upstream O&G operations. – Aug 6, 2026
