Carimin’s IPO oversubscribed by 22 times

  • Business
  • Saturday, 01 Nov 2014

KUALA LUMPUR: The public portion of Carimin Petroleum Bhd’s initial public offering (IPO), comprising 11.7 million shares, has been oversubscribed by 22.1 times.

A total of 13,421 applications for 269.7 million shares were received from the public, the offshore oil and gas (O&G) support services provider said in a statement.

The company will be listed on the Main Market on Nov 10.

Managing director Mokhtar Hashim said despite the current volatility in the O&G sector, the significant oversubscription demonstrated the investing public’s strong confidence in Carimin’s growth prospects.

“Carimin’s 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 said.

Carimin’s IPO entails a public issue of 60.7 million new ordinary shares, and an offer-for-sale of 5.9 million vendor shares, at RM1.10 apiece.

The IPO would raise RM66.8mil in proceeds for the group.

Of this, RM35.3mil would be used for the purchase of an accommodation workboat and RM12mil for upgrading the group’s fabrication yard in Kemaman, RM8mil for repayment of bank borrowings, RM8mil for working capital and RM3.5mil to defray listing expenses. — Bernama

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