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Offering in respect of 140,000,000 Offering Shares (subject to the Over-allotment Option)
Allocation to the Public Offer: 7,000,000 Offering Shares
Final Offering Price: S$1.56 per Offering Share
THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN INVITATION OR OFFER TO PURCHASE OFFERING SHARES.
PRICE DETERMINATION
Following the close of the Public Offer (as defined in the prospectus dated 9 October 2007 and registered by the Monetary Authority of Singapore on 9 October 2007 (the "Prospectus")) at 5:00 p.m. (Singapore time) on 11 October 2007, Mermaid Maritime Public Company Limited (the "Company") and Macquarie Securities (Singapore) Pte Limited (the "Global Coordinator") are pleased to announce that the Offering Price (as defined in the Prospectus) has been fixed at S$1.56 per Offering Share (as defined in the Prospectus).
New IPO in the oil and gas sector. Thailand-based Mermaid Maritime Public Co Ltd (Mermaid) is offering 140m new shares, with at least 7m shares allocated to the public tranche. The final price will be established through a book-building process, with the maximum at $1.56 per share. Mermaid has two core business segments, namely in the provision of offshore drilling and subsea engineering services to the oil and gas industry in South-East Asia.
Healthy financials recorded. For 1H07, revenue surged 99.9% YoY to Baht 1.9b, whilst net profit rose 16.1% YoY to Baht 311.0m. Offshore drilling service saw sterling revenue growth of 64.1% due to the increase in average day-rates of 24.5%. The subsea engineering service division saw topline growth of 35.0% YoY due to a rise in average charter-rates, increased demand for engineering services from customers, and the delivery of one of the vessels in January 2006. Subsea engineering accounted for 64.1% of sales in 1H07, while drilling services contributed 35.0%.
Expansion plans in the pipeline. Proceeds from the IPO will be used to expand its business. This includes the acquisition of two new-build tender rigs, the building of a DP vessel to increase current capacity and to fund future acquisitions and working capital.
Sub-sea engineering looks promising. Of the two core businesses, sub-sea engineering service offers many growth opportunities. This includes ongoing repair and maintenance, upgrading and regulatory inspections, offshore tie-ins as well as eventual decommissioning which are less readily available and yet regulatory. However, the tender rig drilling division has limited upside, as tender rigs face operational limitations, require an oil platform and operate in shallow water depths. However, with escalating charter rates in jack-up rigs, we do not discount that tender rigs may be the best alternative.
High Valuation. Based on maximum IPO price of S$1.56 per share, historical PER is 36x. Annualising 1H07 earnings, historical PER worked out to be 21x before dilution or 28.7x diluted. Management has guided in its prospectus of a profit warning as a result of unforeseen incidences on both its tender rigs. This has not only resulted in downtime loss, but also an indemnity expense amounting to US$2.3m, which we believe may potentially erode partially its full year profits. As such, the 2007 PER would be higher than 21x (and higher than industry peers).
reply to bh704428..thai co and so high ipo $1.56...how much upside...even Sinostar at 96cts high today is still worth collecting..my advise to collect Sinostar at 90-92cts upside tp TP $1.20 at least..ChinaEnergy(buy at 92cts)...now $1.60 Sino-Env(buy at 82cts)..now $3.40..Epure buy at 78cts now $2.40..safe bet at 90 to 92cts keep 1 to 3 months
Hot on the heels of China Oilfield Technology Services Group's launch of its initial public offering (IPO), another overseas player in the oil and gas services industry is seeking a Singapore listing to raise up to $218.4 million. Thailand-based Mermaid Maritime Public Company Limited yesterday launched its IPO for a Singapore Exchange mainboard listing. The offer of 140 million new shares comprises an international placement for local and overseas investors and a public tranche for Singapore retail investors. The minimum size of the public tranche is seven million shares. The offer shares, to be priced at a maximum of $1.56 each, make up 26.8 per cent of the firm's issued shares. There is also an over-allotment option exercisable by Macquarie Securities (Singapore) Pte Limited, the sole global coordinator, bookrunner and underwriter. Macquarie Securities (Asia) is the issue manager. The final offering price, to be established through a bookbuilding process, is expected to be fixed on Oct 11, the IPO's closing day.
Anyone have any views on this ipo?
Can stag?
I'm undecided whether to apply 50 lots for this ipo or not?