Pacific Radiance plans to issue 171.87m new shares priced at S$0.90 each raising gross proceeds of SGD154.7m ($124.5m).
Net proceeds of SGD150.6m will be used primarily for fleet expansion. Some SGD85.2m has been earmarked for its newbuilding and vessel acquisition programme of 10 OSVs, one AWB, and one ROV. A further SGD32m is being setting aside for post listing fleet expansion.
“The listing is well-timed – E&P spending on offshore infrastructure is expected to grow strongly, and the funds raised from the IPO will be used to make significant additions to our offshore support fleet that will enable us to capture growth in the O&G and deepwater sectors,” said Mok Weng Vai, executive director of Pacific Radiance.
Looking into the future the company also sees the IPO as helping position it for further expansion such as mergers and acquisitions.
“This listing on one of the region’s leading exchanges will enhance the group’s standing across the region and beyond as we step up our plans for growth, which include strengthening our market position and widening our revenue streams,” said Pang Yoke Min, executive chairman of Pacific Radiance.
“To this end, we are targeting new markets and complementary businesses, which could see us entering into strategic joint ventures or considering viable mergers and acquisitions.”
The IPO closes on 11 November and shares are expected to start trading on the Singapore Exchange 13 November.
United Overseas Bank Limited and UOB Kay Hian Private Limited are the Joint Issue managers and the joint global co-ordinators of the IPO.
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