PACC Offshore Services Holdings files for IPO of up to $311M

PACC Offshore Services Holdings Ltd. (“POSH”), a Singapore-based operator of offshore support vessels has today launched its Initial  Public Offering  on the Main Board of the Singapore Exchange Securities Trading Limited.

The Offering
The Company, in consultation with its Joint Issue Managers, Bookrunners and Underwriters, BofA Merrill Lynch, DBS Bank and OCBC Bank, has priced its IPO at the Offering Price of S$1.15 per Share. Comprising 252,020,000 Offering Shares and 85,605,000 Cornerstone Shares, the IPO is expected to raise gross proceeds of approximately S$388.3 million (USD 310.7 million) . Assuming the Over-Allotment Option of 46,125,000Shares granted by Pacific Carriers Limited (“PCL”) is exercised, the total gross proceeds raised which is payable to the Company and PCL would be approximately S$441.3 million. POSH is expected to have a market capitalisation of approximately S$2.1 billion when listed.

The Offering of 252,020,000 Shares comprises an International Offering of 212,020,000 million shares and a Public Offering of 40,000,000 shares. 25,200,000 Offering Shares of the International Offering have been reserved for the directors,  management, employees and business associates of the Company, its subsidiaries and joint-ventures as well as its parent, Kuok (Singapore) Limited (“KSL”) and its other subsidiaries. At the same time as but separate from the Offering, each of Hwang Investment Management Berhad and Fortress Capital Asset Management (M) Sdn Bhd has entered into cornerstone subscription agreements with POSH to subscribe for an aggregate of 85,605,000 new shares at the Offering Price.

 Seow Kang Hoe, Gerald, Chief Executive Officer and Executive Director of POSH, said, “Our strong parentage and the commitment of our highly-experienced management team have built POSH into the largest Asia-based international operator of offshore support vessels and amongst the top five players globally.  We are therefore well-positioned to capture market opportunities across all our business segments, maintaining our growth momentum and, in particular, expand into the deepwater offshore accommodation segment.”

The estimated net proceeds to the Company of approximately S$374.8 million (around USD 300 million), after deducting costs, will be used as repayment of part of the outstanding amounts under POSH’s revolving facilities which have been used for working capital and capital expenditure purposes. The public offer will commence at 5.00 p.m. on April 17, 2014, and close at 12.00 noon on April 23, 2014. Listing and trading of POSH’s shares on the Main Board of  the SGX-ST is expected to commence at 9.00 a.m. on April 25, 2014.