Singapore: STX OSV yesterday priced its IPO shares at 79 Singaporean cents apiece, compared with a maximum possible price of S$1.13, according to terms sent to investors. This means the STX subsidiary has priced its initial public offering at the bottom of a range.
The company will use the expected $142.2 million gross proceeds from the sale to help build a second shipyard in Brazil and to boost capacity at other facilities making rig-support vessels.
"Investors seem to be disappointed," said Lee Sang Hwa, a Seoul-based analyst at Hyundai Securities Co. "STX OSV sold fewer shares than anticipated and its IPO was priced at a low level, reducing the amount of cash inflow to the company."
STX OSV is selling 180 million new shares, while STX Europe Holding AS is offering 145.6 million shares. STX Offshore is the largest shareholder in STX Europe ahead of STX Engine.
Shares of STX OSV begin trading November 12. DBS Group Holdings Ltd., Goldman Sachs Group Inc., Nordea Bank Finland Plc and Royal Bank of Scotland Plc. arranged the IPO. [05/11/10]
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