POSH raises $311m in Singapore IPO

Joseph Keefe
Thursday, April 17, 2014
Image: POSH file photo

POSH prices IPO at S$1.15 per share, near bottom of indicative range. POSH focuses on service to production, maintenance and is keen on growing offshore accommodation business.


PACC Offshore Services Holdings (POSH) could raise at least S$388.27 million ($311 million) after pricing its initial public offering near the bottom of the pricing range indicated earlier, the company said on Thursday.

The deal comes as Singapore's IPO market has struggled in recent years. Most big-ticket listings in Asia opt for Hong Kong where there is more robust demand from Chinese and international investors.

POSH priced the deal at S$1.15 a share against an indicative price range of S$1.13 to S$1.24 a share, it said in its prospectus. The company is selling 337.625 million shares excluding the greenshoe option.

"We priced it on a basis that we felt comfortable in terms of demand of institutional shareholders coming in," Chief Financial Officer Geoffery Yeo told reporters.

Bank of America Merrill Lynch, DBS Bank and Oversea-Chinese Banking Corp Ltd are the joint issue managers, bookrunners and underwriters.

POSH, which is part of the empire of Malaysia's richest man, Robert Kuok, operates 112 vessels and is the largest Asia-based international operator of support vessels for offshore oilfields.

The offshore support vessel division contributed over half of revenue in 2013. Yeo said POSH was focusing on expanding the services, production and maintenance business, rather than exploration, as it was "less prone to volatility".

International oil companies have been tightening spending on exploration and production after a decade of double-digit growth, hurting oilfield service industry along the way.

Earnings from the offshore accommodation segment, which provides vessels that can give offshore production operations extra lodging, engineering, construction and storage capacity, is expected to double to 50 percent by the end of 2015, POSH said.

"We believe the (offshore accommodation) fleet is ageing and needs replacement, at the same time the market is growing," said Chief Executive Officer Gerald Seow.

POSH is taking delivery of several accommodation vessels this year and next, including two large accommodation semi-submersibles that could each provide 750 beds for offshore workers.

POSH's IPO followed that of Pacific Radiance Ltd, an offshore support vessel operator, last November. Pacific Radiance share price closed at S$1.085, up nearly 11 percent from the opening price when the stock started trading.By Elzio Barreto and Rujun Shen ($1 = 1.2503 Singapore Dollars) (Additional reporting by S. Anuradha of IFR in SINGAPORE; Editing by Miral Fahmy)

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Ocean Mineral Singapore Set for Seabed Exploration

Ocean Mineral Singapore Pte. Ltd. (OMS) has received approval from the International Seabed Authority (ISA) on its application for its first seabed exploration licence.

DNV GL Publishes Regulatory Roadmap for Floaters in the US

DNV GL announced it has mapped out what is necessary to be in compliance with U.S. Coast Guard (USCG) requirements to operate FOIs, FSOs and FPSOs in U.S. waters.

Second Typhoon Threatens Taiwan

The Taiwan military was collecting and distributing sandbags to guard against possible flooding on Tuesday as a typhoon bore down on the island after brushing the Philippines.

Energy

Ocean Mineral Singapore Set for Seabed Exploration

Ocean Mineral Singapore Pte. Ltd. (OMS) has received approval from the International Seabed Authority (ISA) on its application for its first seabed exploration licence.

Suicide Attack Escalates Libya Violence, Oil Output Slips

Crude output slips for first time since port deal; fresh clashes in Tripoli and Benghazi. Brega oil port seen open in few days. A twin suicide bombing at a Libyan

Maine Port City Bans Oil Loading

City councilors in South Portland, Maine, voted late Monday night to ban the loading of crude oil onto tankers along its waterfront, throwing up yet another roadblock

Wind Power

Harnessing the Wind for Auxiliary Propulsion

Finnish marine engineering company Norsepower Oy Ltd. announced that it will bring to the commercial maritime market an auxiliary wind propulsion solution aimed

NJ Congressmen Supports Offshore Wind Proposal

Congressman Frank Pallone has issued the following statement in response to the Department of the Interior’s announcement of the proposed lease sale for nearly 344,

Imtech Equips HelWin bèta with HVAC System

On June 14, the HelWin bèta platform left on a barge from the Heerema Fabrication Group's (HFG) yard in Zwijndrecht for Schiedam to complete outstanding work. Last week,

Offshore Energy

DNV GL Publishes Regulatory Roadmap for Floaters in the US

DNV GL announced it has mapped out what is necessary to be in compliance with U.S. Coast Guard (USCG) requirements to operate FOIs, FSOs and FPSOs in U.S. waters.

NJ Congressmen Supports Offshore Wind Proposal

Congressman Frank Pallone has issued the following statement in response to the Department of the Interior’s announcement of the proposed lease sale for nearly 344,

Sembawang Shipyard to Convert 2 FPSOs for Kaombo Project, Angola

Sembcorp Marine’s wholly-owned subsidiary Sembawang Shipyard has secured a Floating Storage Production Offloading (FPSO) conversion contract worth about S$600 million from Saipem SA,

 
 
Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Salvage Ship Electronics Ship Repair Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2024 sec (5 req/sec)