Bank of China-managed fund buys 2.8% of Oiltek in SAF push
What's the deal? The Global SAF and Energy FundDealroom has a profile for this one. Try Dealroom →, managed by Bank of China Asset Management (Singapore)Dealroom has a profile for this one. Try Dealroom →, has acquired 12,000,000 ordinary shares in Oiltek International LimitedDealroom has a profile for this one. Try Dealroom → (SGX: HQU), a stake of roughly 2.797% of the company. The Singapore-listed firm engineers vegetable oil processing technology and is positioning itself in the sustainable aviation fuel (SAF) value chain across Asia-Pacific.
Why now? SAF demand is climbing on the back of airline decarbonisation targets and tightening regulation. Asia-Pacific is one of the fastest-growing aviation markets and already hosts vegetable oil industries that supply relevant feedstock.
The numbers: OiltekDealroom has a profile for this one. Try Dealroom → reports a 24% net profit compound annual growth rate from FY2019 to FY2025, zero debt, RM99.7 million in cash, and a dividend payout of about 52.5% of profit after tax. Its share price has risen 1,625% over five years.
What's the endgame? The fund and its advisor, Sky Ventures CapitalDealroom has a profile for this one. Try Dealroom →, see alignment between the fund's regional SAF project pipeline and Oiltek's engineering and execution capabilities, spanning feedstock pretreatment, oil refining, HVO, biodiesel, and biogas. The fund is currently looking into investing in Sarawak for SAF development.
What's next? Oiltek has proposed a secondary listing on the Bursa Malaysia Main Market and holds an active pipeline of regional SAF project opportunities.
"We are extremely pleased to welcome Oiltek International into the Global SAF and Energy Fund's investment portfolio," said Richard Chee, managing partner of Sky Ventures Capital and advisor to the fund.
The signal: Institutional capital is moving toward the SAF supply chain in Asia-Pacific, betting that established engineering players — not just fuel producers — will capture value as the region builds out renewable fuel infrastructure.
Image credit: Harlz_
