Capitol Nusantara IPO plans target Indonesia OSV market

Capitol is linked to Singapore's ASL Marine through the latter's association with Indonesian parent Cipta Nusantara Abadi and is a sign of yet more Singapore companies with OSV expertise entering the Indonesian cabotage market through joint ventures.

Capitol commissioner Yanuar Wijaya was quoted in local media as saying its decision to sell some 25% of its enlarged capital or 208.36m shares to the public was based more on its desire to become a publicly listed company than to raise funds.

“Even without the IPO funds, we will still purchase new vessels. We have entered several tender processes. If we manage to secure 80% of them, we will purchase around 10 more AHTS vessels,” he said.

The book building period will run until 27 December and the shares are slated to be listed on the Indonesia Stock Exchange on 14 January 2014. The IPO price has been set between IDR190 to IDR230 per share, with the issue being managed by OCBC Securities.

The company will use proceeds from the IPO for the purchase of an anchor handling tug supply vessel (AHTS), which would cost between IDR40bn to IDR50bn and will turn its focus more towards the OSV sector from its current business model where over 90% of income is from tug and barge charters for the coal and sand trade, Wijaya said.

Capitol is negotiating the purchase with various parties, including its affiliate ASL Shipyard Indonesia, for a 5,000-6,000 bhp vessel, he added. Other options such as using internal funds and bank loans would also be considered if employment could be secured for them.