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Chemoil Energy IPO

any comments whether is it worth subscribing??

Will it be like another "Thai Bev" or it is a much better one?

 

Among the projects that Chemoil intends to pursue after the IPO are the setting up of terminals in Panama and Fujairah, purchasing a company in Rotterdam and forming joint ventures in India and Greece, Chemoil's chief executive Robert Viswanathan Chandran told a media and analyst briefing here.



"Our target is to spend the proceeds in two years," Chandran added.



Noting the expected global economic slowdown in the next two years, Chandran said: "This is usually a recession-proof type of business."



Chandran said Singapore's reputation as the largest bunker market of the world and the company's thrust to increasingly expand outside the US have been the company's primary considerations in deciding to list here.



He added that the company is in discussion with International Enterprise Singapore to transfer its headquarters here from San Francisco.

 

It supplied 13.3m metric tons of fuel to the marine industry in 2005, making it one of the world's largest independent supplier of fuel to the marine industry.



Chemoil's net profit rose to US$49.5m last year from US$12.9m in 2004.

 

It is launching an IPO of 439.49m shares at up to $1.35. The IPO comprises 366.24m new shares and 73.25m vendor shares. About 13.18m shares will be made available for the retail offer and 426.3m shares will be for placement.



The price will be determined after a book-building process. Chemoil has set the maximum offering price at US$0.85 or $1.35, based on the fixed exchange rate of $1.5846 per US$.



The IPO is expected to generate about US$356m in net proceeds, based on the maximum offer price and assuming the over-allotment option is exercised in full.



"We expect to utilize net proceeds to expand our operations globally in accordance with our corporate strategy," Chemoil, a global supplier of marine fuel products, said in its prospectus.



Chemoil intends to set aside US$285m for potential corporate acquisitions, joint ventures and asset acquisitions that will support its operations and for the construction of facilities such as terminals. About US$71m will be used for working capital purposes, Chemoil said.



The joint bookrunners for Chemoil Energy's IPO are JP Morgan, Morgan Stanley and UBS Investment Bank. UOB Asia is the coordinator of the public offer.



The public offer will open tomorrow and will close on Oct 2. The placement closing date is Oct 3, when the price is expected to be determined. Trading of Chemoil shares is expected to start Oct 9.

 

Learnt that Chemoil Energy IPO will begin on 27 Sept 06 to 02 Oct 06 for public subscriptions. Anyway, does this IPO worth a subscribe?

 

It will start roadshows on Monday for an IPO worth up to US$374 million, the 2nd-biggest IPO in Singapore this year, bankers said.



A source close to the deal said a total of 439.49m shares -- equivalent to 30% of the enlarged share capital -- would be sold in the IPO at an indicative price range of US$0.65 to US$0.85 a share. The price range was based on a PER of 11-13x 2007 earnings, the source said.





A second source said the company would be holding roadshows in Hong Kong on Monday and Tuesday, in Singapore on Wednesday and Thursday and in London on Friday and next Monday.



Next week, the roadshows will move to the U.S. and the deal will be priced in early October, the source said.



Chemoil Energy plans to sell 366.24m new shares, while Japan's Itochu Corp. is selling 73.25m existing shares.

 

Chemoil Energy Ltd, the largest supplier of bunker fuel to the US maritime industry, plans to sell a total of 382.16m new and existing shares, or 27% of the enlarged share capital. The company planned to raise US$400-US$500m in the mainboard IPO.



It plans to sell 308.92m new shares, while Japan's Itochu Corp., a shareholder in Chemoil Energy, is selling 73.25m existing shares.



Chemoil has bunker fuel operations in Los Angeles, Houston and New York. It also operates in Rotterdam, Antwerp and Singapore.



Chemoil Energy, which is incorporated in Hong Kong, has 20% of the U.S. marine fuel market and 5% of the global market. The firm has operations in the United States, Panama, the Netherlands, India and Singapore.



The group was set up in 1981 by its chief executive, Robert Chandran. Chandran and Itochu will own 70% after the IPO. It is equally owned by Chandran and Itochu Corp.



Chemoil Energy last month acquired all the outstanding shares of Chemoil Corp as the two companies were under the control of the same shareholders.



Chemoil Energy said in its prospectus that proceeds would be used for potential acquisitions, investments and the construction of facilities such as terminals, adding that it is currently looking at potential projects in the Netherlands, Greece, United Arab Emirates, India, Panama and Egypt.



The group has 1H06 revenue of US$2.04b and net profit of US$25.2m. Total assets and net assets as at end-Jun were US$633m and US$118m respectively. Volume of fuel sold is growing at a CAGR of 14.7% over 2003 to 2005 to about 13.3m tonnes.



JP Morgan, Morgan Stanley and UBS are the lead managers for the IPO.

 

It declared profit is quite low in term of it %, look like some of the profit need to go to it three bookrunners too.

This group, which had revenue of US$2.04 billion and net profit of US$25.2 million for the six months ended June 30, is aiming to list on the main board of the Singapore Exchange. Total assets and net assets for the group as at end-June were US$633 million and US$118 million respectively.

The joint bookrunners of Chemoil's IPO, to be one of the largest in Singapore this year, are JPMorgan, Morgan Stanley and UBS. The IPO pricing has yet to be set.

 

Anyone here have details for this upcoming IPO? Worth for a subscribe?