Sealink International Bhd, pulling the stock's opening price seven sen below its initial offer price of RM1.25, the Star reported. Sealink's earnings would be sustained by the long-term charter contracts, which contributed about half of revenue, Yong said after the company's listing.
The group's current order book stood at about RM400mil including both charter and shipbuilding activities. Operating margins were about 25% across the board, Yong said, adding that the steel constituted only 15% of total vessel cost. The biggest cost is equipment, which Sealink has already pre-booked and therefore, would not see much erosion in margins.
Source: The Star