Carimin's IPO oversubscribed 22.1 times

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KUALA LUMPUR (Oct 31): Carimin Petroleum Bhd, enroute to list on the Main Market of Bursa Malaysia on Nov 10, 2014, saw the public tranche of its initial public offering (IPO) oversubscribed 22.1 times.

In a statement today, Carimin said it received 13,421 applications for a total of 269.7 million shares equivalent to RM296.6 million in value, for the public tranche of 11.7 million shares.

Notices of allotment will be mailed to all successful applicants on or before Nov 7.

The offshore oil and gas (O&G) support services provider's IPO entails a public issue of 60.7 million new shares, and an offer-for-sale of 5.9 million vendor shares, at an issue price of RM1.10 per share.

Carimin’s IPO would raise RM66.8 million in proceeds for the group. Of this, RM35.3 million will be utilised for the purchase of an accommodation workboat, RM12 million for upgrading the group’s fabrication yard in Kemaman, RM8 million to repay bank borrowings, RM8 million for working capital, and the remaining RM3.5 million to defray listing expenses.

“Despite the current volatility in the O&G sector, the significant oversubscription of our IPO demonstrates the investing public’s strong confidence in Carimin’s growth prospects and its underlying fundamentals as one of the leading providers of O&G support services," said Carimin managing director Mokhtar Hashim in the statement.

"Carimin’s upcoming listing is a key milestone that grants us access to capital for capacity building, to better execute ongoing projects and strengthen our technical capabilities.

"At the same time, being a listed entity backed with strong track record would boost our profile for future tenders,” he added.

Carimin provides offshore hook-up and commissioning (HUC), platform maintenance services, and professional manpower supply for the O&G industry in Malaysia. The group’s clientele include O&G majors such as Petronas Carigali, Shell, Murphy Oil, Talisman, Exxon Mobil, Newfield, and others.

As of Sept 30, 2014, Carimin's total work value in hand stood at RM900.8 million, which will keep it busy until 2018.

For the financial years ended June 30, 2011 to 2014, Carimin recorded 15.7% in compounded annual growth rate (CAGR) in group revenue to RM245.6 million. Net profit grew at a faster pace of 32% CAGR to reach RM21.9 million in the same period.