TMD Energy Limited Announces Pricing of US$10.08 Million Initial Public Offering

Rhea-AI Summary

TMD Energy (NYSE American: TMDE), a Malaysia and Singapore-based integrated bunkering services provider, has announced the pricing of its Initial Public Offering (IPO) of 3,100,000 ordinary shares at US$3.25 per share, raising gross proceeds of approximately US$10.08 million.

Trading will commence on April 21, 2025 on the NYSE American under the symbol 'TMDE', with the offering expected to close on April 22, 2025. The underwriter, Maxim Group , has a 45-day option to purchase up to 465,000 additional shares, potentially increasing total gross proceeds to US$11.59 million.

The company plans to use the proceeds for:

• Purchase of cargo oil
• Defraying listing expenses
• Working capital and general corporate purposes

Positive

• Successfully completed IPO raising US$10.08 million in gross proceeds
• Listing on major exchange NYSE American provides increased visibility and access to capital markets
• Additional US$1.51 million possible through over-allotment option
• Clear allocation of proceeds for business expansion and operations

Negative

• IPO proceeds relatively modest at US$10.08 million
• Actual net proceeds will be lower after deducting underwriting discounts and expenses
• Potential dilution for existing shareholders if over-allotment option is exercised

Insights

Financial Analyst

TMD Energy's $10.08M IPO provides capital for bunkering operations but represents a modest-sized offering with financial context.

TMD Energy (NYSE American: TMDE) has successfully priced its initial public offering at $3.25 per share, offering 3,100,000 ordinary shares for total gross proceeds of approximately $10.08 million. This capital raise, while modest in size for an IPO, represents a significant milestone for this Malaysia and Singapore-based maritime services provider specializing in ship-to-ship fuel transfers, vessel management, and chartering.

The company has structured its offering with a 45-day over-allotment option allowing underwriter Maxim Group to purchase up to 465,000 additional shares, potentially increasing gross proceeds to $11.59 million. Trading begins immediately on NYSE American under ticker symbol "TMDE," with the offering set to close April 22.

The allocation of proceeds reveals TMD's operational priorities: purchasing cargo oil (essential for their core bunkering business), covering listing expenses, and strengthening working capital. This suggests a focus on reinforcing existing operations rather than major expansion or diversification initiatives.

The selection of NYSE American as their listing venue is notable, as this exchange typically hosts smaller growth companies seeking U.S. capital market access. The single underwriter arrangement (versus a consortium of major banks) also aligns with the offering's modest size. For investors, this IPO provides entry into the maritime services sector in Southeast Asia's critical shipping corridors, though with financial context to evaluate longer-term prospects.

Maritime Industry Expert

TMD Energy enters public markets with strategic positioning in Singapore/Malaysia bunkering sector, but scale remains compared to industry giants.

TMD Energy's public market debut highlights their strategic positioning within maritime logistics infrastructure. Operating in Singapore—the world's largest bunkering port handling over 50 million tonnes of marine fuels annually—gives TMD access to one of shipping's most critical chokepoints through the Straits of Malacca.

The company's integrated service model combining bunkering operations (ship-to-ship fuel transfers) with vessel management and chartering represents a vertically integrated approach that potentially captures multiple revenue streams from the same customer base. This operational structure enables service bundling that may provide competitive advantages in a traditionally thin-margin industry.

The decision to allocate IPO proceeds primarily toward cargo oil purchases indicates a focus on scaling core bunkering operations, which typically require substantial working capital for fuel inventory maintenance. This suggests TMD is prioritizing strengthening their existing market position rather than immediate diversification.

While the $10.08 million raise provides necessary operational capital, it represents a relatively modest entry into the public markets for a company in the capital-intensive maritime services sector. The bunkering industry faces ongoing transitions related to environmental regulations and alternative fuel requirements, creating both challenges and opportunities for specialized providers like TMD Energy as they navigate their new status as a public entity.

KUALA LUMPUR, MALAYSIA, April 21, 2025 (GLOBE NEWSWIRE) -- TMD Energy Limited (the “Company”) (NYSE American: TMDE), together with its subsidiaries is a Malaysia and Singapore based services provider engaged in integrated bunkering services which involves ship-to-ship transfer of marine fuels, ship management services and vessel chartering services, today announced the pricing of its initial public offering (the “Offering”) of 3,100,000 ordinary shares (“Shares”) at a price to public of US$3.25 per Share for the total gross proceeds of approximately US$10.08 million, before deducting underwriting discounts and other related expenses, assuming the underwriters do not exercise their over-allotment option to purchase additional Shares. The Shares will begin trading on April 21, 2025, U.S. Eastern time, on the NYSE American under the symbol “TMDE”. The Offering is expected to close on April 22, 2025, subject to customary closing conditions.

The Company has granted the underwriter a 45-day option to purchase up to an aggregate of 465,000 additional Shares to cover over-allotments at the initial public offering price, If the underwriter exercises their option to purchase the additional Shares in full, the total gross proceeds before deducting underwriting discounts and other related expenses from the offering are expected to be approximately US$11.59 million.

The Company intends to use the net proceeds from the Offering for (i) the purchase of cargo oil; (ii) defraying listing expenses; and (iii) working capital and other general corporate purposes.

Maxim Group LLC (“Maxim”) is acting as sole book-running manager of the Offering. Loeb & Loeb LLP, is acting as U.S. legal counsel to the Company, and Pryor Cashman LLP is acting as U.S. legal counsel to Maxim for the Offering.

A registration statement on Form F-1, as amended (File No. 333-283704) related to the Offering was initially filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 10, 2024 and was declared effective by the SEC on March 31, 2025. The Offering is being made only by means of a prospectus forming a part of the effective registration statement. Copies of the prospectus relating to the Offering may be obtained from Maxim Group, LLC, 300 Park Avenue, 16th Floor, New York, NY 10022, United States of America or by email at syndicate@maximgrp.com. In addition, a copy of the prospectus relating to the Offering may be obtained via the SEC's website at www.sec.gov.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About TMD Energy Limited

TMD Energy Limited and its subsidiaries (“TMDEL Group”) are principally involved in marine fuel bunkering services specializing in the supply and marketing of marine gas oil and marine fuel oil which includes high sulfur fuel oil, low sulfur fuel oil and very low sulfur fuel oil, to ships and vessels at sea. TMDEL Group is also involved in the provision of ship management services for in-house and external vessels, as well as vessel chartering. As of today, TMDEL Group operates in 19 ports across Malaysia with a fleet of 15 bunkering vessels. For more information, please visit the Company’s website at: www.tmdel.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including but not limited to, the Company's Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can identify these forward-looking statements by words or phrases such as “may”, “could”, “will”, “should”, “would”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “project” or “continue” or the negative of these terms or other comparable terminology. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.

For investor and media inquiries, please contact:

TMD Energy Limited
Email: corporate@tmdel.com

WFS Investor Relations
Email : services@wealthfsllc.com

FAQ

What is the IPO price and size of TMD Energy (TMDE) offering?

TMD Energy's IPO consists of 3,100,000 ordinary shares priced at US$3.25 per share, raising US$10.08 million in gross proceeds before expenses.

When will TMDE stock start trading on NYSE American?

TMDE shares will begin trading on NYSE American on April 21, 2025.

How will TMD Energy use the IPO proceeds?

The proceeds will be used for purchasing cargo oil, covering listing expenses, and working capital and general corporate purposes.

What is the over-allotment option for TMDE's IPO?

Underwriters have a 45-day option to purchase up to 465,000 additional shares, potentially increasing total gross proceeds to US$11.59 million.

What services does TMD Energy (TMDE) provide?

TMD Energy provides integrated bunkering services, including ship-to-ship marine fuel transfers, ship management services, and vessel chartering services in Malaysia and Singapore.