PT Logindo Raises Cash to Expand Offshore Support Fleet
The Indonesian joint venture (JV) of Pacific Radiance Ltd., PT Logindo Samudramakmur Tbk (PT Logindo), plans to raise up to Rp35 7 billion (USD 30.06 million), with the offer of 127,380,000 new ordinary shares in its initial public offering (IPO) on Indonesia Stock Exchange. Each new share is priced at Rp2,800 apiece.
Mr Pang Yoke Min, the Executive Chairman of Pacific Radiance, said: “As most of the IPO proceeds will be channelled to expand PT Logindo’s offshore support fleet to tap on the high growth cabotage – protected Indonesian market, we expect the net impact to remain value accretive to the Group. ”
“We will also retain joint control over the company and help drive its strategic direction together with our joint venture partners. ”
PT Logindo owns and operates a fleet of 58 offshore vessels that work in local waters. For the financial year ended 31 December 2012 (FY2012), PT Logindo’s revenue reached US$ 34.1 million, up from US$ 18.1 million in FY2010.
Hence over the period, it achieved a compound annual growth rate of 37. 3 %. In the Group’s latest 9MFY13 results, its joint venture companies contributed a 71% higher pre – tax profit of US$9.1 million to its earnings, of which nearly 60% was due to PT Logindo.
The Group itself saw a 37% increase in its net attributable profit to US$40.2 million in 9MFY13.
Mr Pang added: “ As one of Indonesia’s largest offshore support services providers, PT Logindo is well placed to benefit from the country’s strong E&P spending, which is also expected to be the fastest growing in Asia.
“ Other than Indonesia, we are also eyeing other high growth and protected markets such as Latin America, Australia and Africa, to diversify our global footprint. ”
As with the recent listing of Pacific Radiance in November, there are no vendor shares in the PT Logindo IPO.
Press Release, December 6, 2013