KUALA LUMPUR (Jan 23): Offshore support vessel provider Alam Maritim Resources Bhd (AMRB) has proposed two private placements involving up to 30% of its total issued shares that could raise up to RM92.78 million, to be used for working capital.

The shares are to be placed with third party investors to be identified, at an issue price to be fixed, Alam Maritim said in a stock exchange filing today.

The first placement involves the issuance of up to 205.27 million new shares, or 10% of its expanded share base, at an indicative issue price of 15.5 sen per share, which could raise as much as RM31.82 million.

The second placement will involve up to 451.58 million new shares or 20% of its expanded share base, at an indicative issue price of 13.5 sen per share, which could raise up to RM60.96 million.  

The indicative issue price of the first placement represents a 7.19% discount to the five-day volume-weighted average price (VWAP) of Alam Martim shares — up to and including Jan 16 — of 16.7 sen, while the second placement's indicative issue price represents a discount of 19.16%.

From the expected gross proceeds, the group intends to fund its service and maintenance of major vessels and dry docking works.

The group currently has 39 vessels comprising 19 anchor handling tug and supply vessels, six utility tug vessels, five accommodation vessels/work barges, one diving support vessel, two fast crew boats, and six tug supply vessels.

“In order to meet the regulatory requirements with International Convention for the Safety of Life at Sea (Solas) and Marine Department of Malaysia within the relevant prescribed timeframe, the group requires additional funds of approximately up to RM46.70 million for the service and maintenance of major vessels/dry docking works under the maximum scenario,” it said.

The proposals are expected to be completed by the first quarter of 2020.

Alam Maritim shares closed 0.5 sen or 2.94% lower at 16 sen today, valuing it at RM176.28 million. The stock has climbed near 74% from a year ago.