Otto Marine to fund fleet expansion through share placement

Singapore: Otto Marine is to raise S$95m through a share placement to expand its offshore services division and chartering fleet. The 220m new shares priced at S$0.432 per share a 9.83% discount to the last trade price on January 22.

Otto Marine said it would use 53% of the S$92.6m net proceeds from the placement to expand its offshore services division, 30% to expand its chartering fleet, and 17% for working capital.

The Singapore-listed company, which owns and operates Batamec Shipyard (pictured) on the Indonesian island of Batam, has been seeking to diversify its business. [27-01-10]