Posh offshore services' IPO modestly priced at $1.15
BILLIONAIRE Robert Kuok's PACC Offshore Services Holdings (Posh) could raise at least $388.3 million here after pricing its initial public offering (IPO) near the bottom of the pricing range indicated earlier, two sources with knowledge of the matter said.
Underwriters have recommended that Posh price the deal at $1.15 a share, against an indicative price range of $1.13 to $1.24 a share, the sources said.
The final price needs to be approved by the company or the company's board, the sources added.
Some 40 million shares will be offered to the public at $1.15 apiece. The bulk of the offering - some 212 million shares - will be placed out to international investors, including 25.2 million shares for Posh directors, management, employees and business associates, as well as parent Kuok (Singapore) Limited and its subsidiaries, The Straits Times reported.
Separate from the offer, two cornerstone investors, Hwang Investment Management and Fortress Capital Asset Management, have agreed to take up 85.6 million shares.
Including over-allotment of 46.1 million shares, the IPO is expected to raise $441.3 million.
Posh - part of the empire of Mr Kuok, Malaysia's richest man - is the largest Asia-based international operator of support vessels for offshore oilfields.
The offshore support vessel division contributed over half of revenue last year. Chief financial officer Geoffery Yeo said Posh was focusing on expanding the services, production and maintenance business, rather than exploration, as it was "less prone to volatility".
Bank of America Merrill Lynch, DBS Bank and OCBC Bank are the joint issue managers, bookrunners and underwriters.
The IPO closes at noon on Wednesday, with trading of the shares set to start on the Singapore Exchange next Friday.