Group plans to invest RM95 million to acquire new AWB
(From left) M&A Securities Sdn Bhd executive director Bill Tan, Mokhtar, Minister in the Prime Minister’s Department Datuk Sri Abdul Wahid Omar, Carimin chairman Tan Sri Kamaruzzaman Shariff and executive director Shatar Abdul Hamid pose for a photo during the prospectus launch yesterday.
KUCHING: En route to listing on the Main Market of Bursa Malaysia, offshore oil and gas (O&G) service provider Carimin Petroleum Sdn Bhd (Carimin Petroleum) has proposed 60.7 million new ordinary shares at an issue price of RM1.10 per share for its initial public offering.
In its prospectus, it said 11.694 million new shares will be available for application by the public while three million new shares will be available for application by eligible directors and employees and 46.006 million new shares will be placed to identified investors.
It also announced an offer for sale of 5.89 million existing shares by way of placement to identified investors.
Application period will be accepted beginning yesterday to October 29, 2014 and its tentative listing date is on November 11, 2014.
Carimin in a press release said the IPO is expected to raise RM66.8 million in public funds and of this, RM35.3 million will be utilised for the purchase of Carimin Acacia, RM12 million for upgrading the group’s fabrication yard in Kemaman, RM8 million for repayment of bank borrowings, RM8 million for working capital, and the remaining RM3.5 million to defray listing expenses.
It also plans to expand its fleet by investing RM95 million to acquire an accommodation workboat (AWB), named Carimin Acacia, to support ongoing and future projects.
According to managing director Mokhtar Hashim, “We believe it is timely for Carimin to expand our fleet of OSVs to boost our in-house support for existing contracts in hook up and commissioning (HUC) as well as platform maintenance services.
“At the same time, the upgrading of our OSV fleet will reduce our reliance on assets from third party operators and strengthen our technical portfolio for future contract tenders,” he said during the prospectus launch yesterday.
Carimin Acacia would be equipped with a crane and other supporting equipment and fittings. Scheduled for delivery in June 2015, it would allow Carimin to provide accommodation for its personnel stationed offshore.
The workboat would also be integral to support Carimin’s operations for its work package under Petronas’ Pan Malaysia Integrated HUC and Topside Major Maintenance (TMM) Services contract, which is expected to be delivered over a five-year period from 2013 to 2018.
According to its prospectus report, Carimin Group was initially formed in 1989 with the incorporation of Carimin Sdn Bhd (CSB) in Sarawak. Its operations were then moved to Peninsular
Malaysia.
Subsequently, Carimin Petroleum was incorporated on March 2012. Its business activities centre on supporting the offshore O&G industry in Malaysia.
It primarily provides offshore HUC, production platform system maintenance and upgrading services including minor fabrication services.
The group’s clientele include O&G majors such as Petronas Carigali, Shell, Murphy Oil, Talisman, Exxon Mobil, Newfield, and others.
Other than that, its services also include manpower supply and equipment rental services.
Carimin also currently owns an Anchor Handling Tug Supply vessel called Carimin Airis that was acquired in 2013, and co-owns SK Deep Sea, an AWB through the group’s 14 per cent stake in Synergy Kenyalang Offshore Sdn Bhd.
Carimin has work value of RM900.8 million to date, to be delivered until 2018.