KUALA LUMPUR: Enproserve Group Bhd, a provider of plant maintenance and engineering services, is charting a strategic expansion into the heavy lifting and equipment rental segment – a move the company views as a scalable, recurring income stream beyond its traditional contract-based operations.
While the group remains firmly anchored in its core offerings – plant maintenance and turnaround and engineering, procurement, construction and commissioning – it is now broadening its portfolio to include rental services for cranes, skylifts and small lorries.
This diversification gained momentum following the recent signing of a master service agreement with Petroliam Nasional Bhd (Petronas), covering multiple subsidiaries including Petronas Chemicals Group Bhd, Petronas Gas Bhd and Petronas Chemicals Fertiliser Kedah Sdn Bhd.
“This is an asset-heavy segment, but it’s one we are confident in,” Enproserve CEO Mohamad Nizam Yaakub said at a press conference following the company’s listing on Bursa Malaysia’s ACE Market today.
“The rental business provides recurring income, and we’re targeting strong demand across Peninsular Malaysia.”
Enproserve currently holds 33 long-term contracts, primarily with Petronas and its subsidiaries, extending through 2029. Its exclusive focus on downstream operations provides a degree of insulation from the volatility of crude oil prices.
“Plant maintenance will never stop. These are statutory requirements,” said group managing director Azman Yusof.
“Unlike upstream operations, which may scale down during periods of low oil prices, downstream plants must remain operational – and that means ongoing maintenance is non-negotiable.”
This resilience has enabled Enproserve to become one of the few “pure-play” downstream service providers listed on the local bourse. This niche positioning analysts believe could attract institutional investor interest in the near future.
The group’s current operations span Johor, Malacca, Terengganu and its Cyberjaya headquarters.
While East Malaysia is not on its immediate roadmap, Azman said, the company remains open to expansion should the right partner or opportunity arise.
“Right now, we’re staying focused on the 2027 Pengerang Integrated Complex (PIC) turnaround. It requires over a year of preparation, and we don’t want to stretch ourselves too thin,” he explained.
Enproserve opened at 26 sen in its market debut today, two sen above the initial public offering (IPO) price of 24 sen, with 5.31 million shares traded at the opening bell. It closed at 26.5 sen, 2.5 sen or 10.4% above the IPO price, on volume of 75.849 million shares.
The IPO raised RM50.4 million, with RM23.7 million earmarked for capital expenditure, including the purchase of cranes, forklifts, and other heavy machinery. These assets will support internal operations and be made available for rental.
“We didn’t expect the price to rise this morning given current market sentiment, but it shows that investors are confident in our direction,” said Azman. “We feel relieved and optimistic.”
While the group does not yet have a formal dividend policy, Azman confirmed that one would be introduced “eventually”, particularly as the company eyes a future transfer to the Main Market.
Meanwhile, Enproserve is positioning itself as a key player in Malaysia’s largest-ever plant turnaround project – the PIC in Johor. The complex is described by Azman as “the biggest in Southeast Asia”, and the scale of the 2027 turnaround is expected to contribute significantly to the group’s revenue.
Though exact figures are subject to unit-rate contracts, Azman described the opportunity as “much larger than what we are currently securing”, and one that necessitates a full year of integrated planning.
“We’re already mobilising internal resources and preparing our teams to ensure a seamless execution,” he said.
“This is not just another job – it is the largest plant turnaround in Malaysia.”
With more than two decades of experience, Enproserve is licensed by Petronas through Standardised Work and Equipment Categories codes, and is registered as a Grade G7 contractor with the Construction Industry Development Board, enabling it to undertake projects of unlimited value.
As Malaysia’s oil and gas and petrochemical sectors prepare for cyclical maintenance and capacity expansion, Enproserve’s combination of niche expertise, deep client relationships, and fresh capital from its IPO places it in a strong position to ride the sector’s growth wave.
“We believe in organic growth. And right now, the growth ahead of us is both significant and achievable,” Azman said.
