Icon Offshore eyes RM450m IPO

Offshore support vessel (OSV) provider Icon Offshore Bhd aims to raise about RM450mil from its initial public offering (IPO), targeted next year, to fund its fleet expansion programme for the next two years.

Chief executive officer Dr Jamal Yusof said with the proceeds from the listing, the company plans to build three to five vessels to grow its business overseas, apart from paying off its debts and for working capital needs.

"We want to build modern and higher technology vessels. We want to grow our business overseas by having a larger footprint, possibly in the Middle East and also in Southeast Asia," he told Bernama in an interview at the company's headquarters recently.
Currently, the company has 32 vessels and operates in Qatar, Vietnam, Thailand and Malaysia.

Jamal said the company also plans to increase human capital development through various in-house training modules.

"Ninety per cent of our crew are Malaysians, and we want to develop them to be better professionals for the industry. "We are very big on training and human capital development. You can build a nice asset but if it is not maintained very well, in three years it will seem very old," he said.

On the progress of the IPO, he said the company is still in the midst of assessing which potential investment bank to submit its application to, as well as conducting book building and as the joint global coordinator.

He said the selected bank will be announced by the end of this month and the company hopes to be listed on the Main Market of Bursa Malaysia by May or June next year.

Asked on the strength of Icon Offshore moving forward, he said the company offers a younger fleet with newer technology, wide geographical reach, low cost structure and good track record of health and safety.

He said the company's average fleet age is about three to four years with experienced crews inherited from the merger of Tanjung Kapal Services Sdn Bhd and Omni Petro Maritime Sdn Bhd last year to form Icon Offshore today.

On regional development, he said Icon Offshore is currently in talks with a party in Indonesia to establish a joint venture that will tender for jobs in the country, adding the negotiations are targeted to be concluded this year before the company submits its listing application to Bursa Malaysia.

Ranked among the top three OSV companies in Malaysia with annual turnover of RM270mil, Icon Offshore employs almost 1,000 staff including 800 marine crew and 145 office staff in Kuala Lumpur, Labuan and Kemaman.

OSV sector to grow by 10 percent in the next three years, says Icon CEO

Malaysia's offshore support vessel (OSV) industry is expected to grow by 10 per cent in the next three years, driven by the increase in drilling activities by the oil and gas (O&G) companies.

Icon Offshore Bhd Chief Executive Officer, Dr Jamal Yusof, said the exploration and production expenditures of Petroliam Nasional Bhd (Petronas) as well as other O&G companies will help boost demand for OSVs.

He said other factors included the normal production activities, deepwater segment, enhanced oil recovery projects, which currently received a big push from Petronas, the marginal fields' production, where Petronas was expected to award 23 of them soon, and pipeline installation, maintenance and repair jobs.

"These are the key drivers that are pushing the OSV market. All these (activities) require OSVs to work," he told Bernama in an interview.

Jamal, who is also President of Malaysia OSV Owners' Association, said Malaysian companies, like other global players, faced a shortage of oil rigs due to the increase in drilling activities.

"There are not enough drilling rigs worldwide. There are market reports that 20-25 per cent of the world's jack-up rigs are going to reach 40-45 years old in the next couple of years and all these need to be replaced.

Ekuinas set for first IPO by mid-2014
http://www.nst.com.my/business/todayspaper...d-2014-1.491681

Draft Prospectus out
http://www.sc.com.my/prospectus-exposure-i...ffshore-berhad/

50 sen each share?

Its par value

Application open via MITI n close @ 15/4/2014
http://www.miti.gov.my/cms/content.jsp?id=...e5b200-78698ed6

Any indicative price?

http://www.thestar.com.my/Business/Busines...-IPO-valuation/

indicative 2.20 to 2.30

That's a good price to come in. Knowing that this company is backed by Ekuinas, I'd expect at least 10% return on listing day.

PE 22.7x based on historical FY13 numbers which is rather high

when it comes to IPO in O&G industry, normally PE won't matter if you plan to dump on listing day.
i remember during Bumi Armada listing, many people complained about its PE of >30, but u saw what happened on the listing day? It went off flying. So, I have hopes that this can make profits.

People go crazy when it's related to O&G sector. PE ratio, price etc. all forgotten.

Juz realized that in Retail Portion (balloting) Bumiputera gets higher allocation than Non-bumi. It's 23.54mil vs 11.77mil shares Normally it's 50-50 (1% each) not 2% vs 1% of the share capital

http://www.sc.com.my/wp-content/uploads/en...con/Sec%204.pdf

This post has been edited by davinz18: Apr 11 2014, 03:47 PM

OMG

Fund managers keeping an eye on Icon Offshore IPO valuation
http://www.thestar.com.my/Business/Busines...-IPO-valuation/

Fund managers keeping an eye on Icon Offshore IPO valuation



RM 450 mil divide by 510.77 mil shares, shouldn't the indicative price be like ~RM 0.88?

Nope. From the 510 mil shares, 289 mil are shares sold by current shareholders, only 221 mil shares are new shares. So, most of the proceeds will go to the shareholders who sell their shares in this IPO, while the company (ICON) will only get money from the issuance of new shares. you can refer to this in page 16 of their prospectus.

So, rm450 mil divide by 221 shares equals to around rm2.++

i see, so rm450 mil will be raised from the issuance of 221 mil new shares sold to public

so the 289 mil shares will be sold by current shareholders to whom? or, they can keep it to listing where they can either sell it on market or just keep holding it?

the current shareholders also sells to the public. this IPO contains both sale of existing shares and sale of new shares. the difference is that sale of existing shares means that the money will straight go to the seller, while the proceeds from issuance of new shares will go to the company.

after the IPO, the existing shareholders will still have more than 50% control of the company, compared to 100% pre-IPO.

as we all know, IPO is the process where the founder or promoter of the company and the existing shareholders to cash out and realise some of their profits by selling their shares.

thanks for the explanation bro!

Hello new here. Can we apply ipo via hl ebroking?

Not at a moment unless stated in prospectus

Anyone know when is this going to be listed? Still can't see this stock in bursa website

Yet to issue prospectus

prospectus will be out end of may or early june.....together with boustead plantation...econpile.

ICON Offshore IPO flags

Offshore supply vessel operator ICON Offshore has begun investor education for a MYR 944.9 million ($295 million) initial public offering of shares just as the plantation arm of Boustead Holdings wraps up pre-marketing for a MYR 1.1 billion ($324 million) deal.

ICON Offshore, Malaysia’s largest pure-play OSV operator, represents the first public divestment by Ekuiti Nasional Berhad (Ekuinas), the government-linked private equity group with a remit is to promote and develop Bumiputera -- or indigenous -- companies. Its IPO also offers investors rare exposure to the exploration and production activities of the country’s national champion, Petroliam Nasional Berhad (Petronas), and unsurprisingly has a very rich valuation attached to it.

The maximum IPO price has been fixed at MYR 1.85, with formal roadshows set to begin at the end of the month.

At MYR 1.85 per share, the deal is being marketed on a price-earnings ratio of 17.6 times estimated 2014 earnings and 13.1 times 2015 earnings.

This puts it at a premium to almost every other listed OSV operator in Malaysia and Singapore, not to mention global operators like Tidewater.

The closest listed comparables within Malaysia are Alam Maritime, Bumi Armada and Perdana Petroleum, which are currently valued at between 12.3 and 18.7 times 2014 earnings.

ICON Offshore’s valuation becomes more comprehensible when viewed as a proxy for Petronas. The group’s hydrocarbon arm, Petronas Carigali, is ICON’s main client and accounted for 71.7% of total revenues in 2013.

listing is 25/6 confirm.....a day b4 boustead plantation 26/6 listing. i give valuation rm2.54....PE18x. got miti max allocation.

What is miti max allocation?

when is last day for IPO APP?

When prospectus will b out n how many shares u get?

Miti allocation out n last day for pymt on 4/6/2014
http://www.miti.gov.my/storage/documents/8...re%20Berhad.pdf

24200 units max. public will ne out on june 4th.

Why the time given by MITI for this IPO too short ?

Standard time for public subscription is 1 week

Malaysia's Icon Offshore to raise up to $293 mln from IPO-IFR

Malaysia's Icon Offshore Bhd, whose ships offer support services to oil platforms, will raise 919 million-945 million ringgit ($285.2 million-$293.3 million) from its listing, after setting the price range at 1.80-1.85 ringgit per share, IFR reported on Thursday.

Bookbuilding will start on Friday and continue for a week, according to IFR, a Thomson Reuters publication. The price range implies a 2015 price-to-earnings ratio of 13-15 times, IFR added.

Around nine cornerstone investors are expected to take up most of the institutional offer, on which there is a six-month lock-up period, IFR reported.

bsted, icon, econpile... all at the same time????

not again....!

so which 1 do u guys pick?

bsted
icon
econpile

apply all 3

Today, Icon Offshore launches prospectus in conjunction with its listing on the Main Market of Bursa Malaysia, Diamond Ballroom, Ground Floor, Mandarin Oriental Hotel, Kuala Lumpur at 0930am (0130GMT)

IPO @ 1.85 n close on 6/6/2014

bsted & icon must dig somewhere for more bullets...

another upcoming econpile....

dig from parent, siblings, lover....

Split yo $ among d 3

from world bank a.k.a. my parents....

Prospectus out
http://www.bursamalaysia.com/market/listed...cements/1640769

split 3 ways? too little... must find somemore $$$...

Opening of application 30/05/2014
Closing of application 06/06/2014
Balloting of applications 10/06/2014
Allotment of IPO shares to successful applicants 23/06/2014
Tentative listing date 25/06/2014

Its revenue / profit more or less quite similar to ALam maritime.... Alam latest price = RM 1.5...

this Icon IPO RM 1.85..... quite high.....

haha IKR! same - Bstead or Icon - have to really choose 1 but both are different industry...its an OnG year so....Icon should be the way to go...

Dei.. Look at the PE first before commenting on the price...

Its PE as stated in Prospectus is 19 to 24.... consider Fair.... but i prefer RM 1.50.... for me quite expensive only..... expensive or not is subjective lo.....

This post has been edited by ferdtwh: May 30 2014, 12:42 PM

listing day falls on World Cup fever (12 Jun to 13 Jul)....will it go >RM 1.85 ?

From The Star

Published: Thursday April 10, 2014 MYT 12:00:00 AM
Updated: Thursday April 10, 2014 MYT 6:58:28 AM

Fund managers keeping an eye on Icon Offshore IPO valuation

by tee lin say


PETALING JAYA: Fund managers studying the upcoming listing of Icon Offshore Bhd are awaiting the indicative initial public offering (IPO) pricing of the company, as they are concerned about softening charter rates.

“Whether or not we buy the shares will depend on the valuation. If it is something above 15 times price earnings ratio, then the likelihood is that we will pass,” said a fund manager.

He was concerned that charter rates for smaller offshore support vessels (OSVs) were coming down, as highlighted by Petroliam Nasional Bhd president and chief executive officer Tan Sri Shamsul Azhar Abbas last month.

Icon Offshore, slated to list in the next few months, has a fleet of 32 vessels, out of which 25 are anchor handling tug and anchor handling tug supply vessels.





“The OSV industry is cyclical, and has had quite a good run. The nature of business in the smaller builts is very competitive, where they can only compete on price. Most of these vessels are also only used during the exploration phase,” said an analyst who is evaluating the IPO.

Ekuiti Nasional Bhd’s (Ekuinas) Icon Offshore, which is reportedly raising some RM450mil from its IPO, is offering 510.77 million shares of 50 sen each, which represents approximately 43.39% of its enlarged issued and paid-up share capital.

This will comprise of an offer for sale of up to 289.02 million existing shares and a public issue of 221.7 million new shares.

It is allocating 40.1% of its proceeds for vessel fleet expansion, 37.1% for repayment of bank borrowings, 17.8% for working capital and the remainder for estimated listing expenses.

In its draft prospectus, Icon Offshore said 65.6% of its vessels was under long-term charter (more than a year), with an average contract duration of 4.6 years.

Icon Offshore is the result of a strategic consolidation of two groups of pure-play OSV companies within Ekuinas’ portfolio – Tanjung Kapal Services Sdn Bhd and OMNI Petromaritime Services Sdn Bhd – that had merged.

Its revenue has increased at a compounded growth rate of 21.6% from RM226.5mil for its financial year ended Dec 31, 2011 (FY11) to RM334.9mil for FY13.

Its adjusted profit after taxation and adjusted profit after taxation margins have increased from RM44.5mil and 19.6%, respectively, in FY11 to RM89.6mil and 26.7%, respectively, in FY13, representing a compounded rate of 41.9%.

2 Concerns here :

1. Fund managers may pull away if PE > 15, Icon Off. current PE is > 15.
2. Charter rates for small vessels coming down, may dilute their coming earnings.

So how, go or not to go.....?

Pls check also alam maritim's PE @ RM1.50...then tell me mahal or not...

Alam Current PE around 20....

i just hoping that this Icon may give some discount, e.g, RM 1.6 also can la.... but end up pricing at RM 1.85....

The reason why - BUY Icon

i) GLC
ii) Ekuinas pampered baby (bumiputra)
iii) Business is linked heavily with Petronas and upcoming bundle of projects, Icon might be awarded projects
iv) GLC again.
v) Gomen let them fall?
vi) OnG Year

Why BUY Bstead?

i) 60% profits as dividend
ii) Prime trees
iii) Increasing hectares to 100,000 this year target
iv) El Nino might affect crops thus increasing palm oil prices (but most likely affect rolls in 2015)
v) Price offers more discount to Icon

Add more if I missed out on anything for you all

Now pick your lot.

apply both of the ipo.

cekidaut the cornerstoners...

http://www.theedgemalaysia.com/business-ne...-investors.html

So how many shares you guys planning to hantam?

30k each?

agreed, after final decision.... applied to Icon already just now.... Boustead also applied in first day open a few days ago......

Im just planning to sai lang in 1 of these two counters...will give one a miss

It seems tat every1 plan to show hand in Icon

What is Icon? Cannot find it

What are you looking for?

sorry im newbie.. cannot find icon in platform

Of course you won't. It won't be listed until 25/6.
Right now you can apply for its IPO.

Icon offshore, tempted to type, which Icon? emoticon?

Another IPO. This one earlier than Boustead Plantation. Price also higher.

Icon Offshore Starts Taking Orders for $300 Million IPO

Shares of Malaysia's Icon Offshore Bhd., which started taking orders Friday for its up to $300 million initial public offering, were snapped up within hours of opening bookings, people familiar with the matter said.

"We've started the roadshow and the shares were fully sold within hours," one of the people said.

Icon Offshore is backed by nine so-called cornerstone investors, who have taken up more than half of the IPO shares which include tycoon Tan Sri Chua Ma Yu, AIA Bhd., Hwang Investment Management Bhd, JF Asset Management Ltd, Lembaga Tabung Haji, Maybank Asset Management Sdn. Bhd., Nomura Asset Management Sdn. Bhd., Permodalan Nasional Bhd, , and UOB Asset Management (Malaysia) Bhd.

Icon Offshore to add 7 vessels to fleet
http://www.nst.com.my/business/latest/icon...-fleet-1.608266

Both Boustead Plantations and Icon Offshore can give 50 sen premium on the listing day . Apply both and see which one you get. If you lucky, you get both.

so mind sharing which one do u choose?? icon or bsted???

I choose both. Apply icon first. Hopefully unsuccessful application be refunded by 11 June 5 pm just in time for Boustead. Icon expected rm0.30-rm0.50 premium. Boustead rm0.25-rm0.35

good strategy!

but balloting date is on the 10th of june.... n usually it takes 2-3 days to get the money back...

last year, applied using cimb, i only get my money after 5 days !!!!

better apply both. split it.

yup, u right.... split ur bullets...n apply both..

Mission impossible

Much better to invest in Icon then Boustead. Oil and gas has a bright prospect and Icon is the largest pure play OSV operator in Malaysia.

If you look at the prospectus, it indicates that their fleet is so much more younger then its competitors. For such a young company, they have grown to such a giant in a short period, indicating a strong management team.

I've put in my bid as well.

Any source to back up yo stmt?

D earliest refund for Icon on 11/6/2014 n tis depend on ind bank too
Majority of banks will refund after ofiz hour

I also like that fact that from 2011 to 2013 revenue CAGR is 21.6%. This is indeed a growing company. High utilsation rate of 86%, higher then global average. Firm order book of RM500 mil with Rm200 mil option.

Section 7 of the prospectus has bought me over.

My answer for sai lang is below.

Agree with your standpoint. I do have better hopes for Icon. Im sai lang in Icon.

My own source !!! So far my prediction is 90-100% right. I predict 7-11 premium around 10 sen - almost right. Let's see my prediction this time .

50c ... good enough for me...

Just noted tat non bumi portion (11.77 mil shares) is 1/3 of total public portion of 35.31 mil
Xpect tough competition as every1 seems to show hand on tis counter

This post has been edited by wil-i-am: May 31 2014, 11:16 AM

Pro - coming to the market at a price-to-earnings multiple (PE) of 18 to 19 times its estimated 2014 earnings (FY14) – a premium over the sector average of 13 times
Con - Its FY15 valuations are more reasonable at 13 to 15 times earnings
http://www.thestar.com.my/Business/Busines...-the-high-side/

Closing 6 June 2014. Money won't be back in time by 11 June for the next IPO. as 6th June is Friday...

Icon Offshore balloting is on 10th June 2014 ( Tuesday ) whereas closing date for Boustead Plantations is on 11th June 2014 ( Wednesday ) . 1 day no time for refund .

that why i will split it between icon and boustead ipo. both good IPO.

Many will skip Boustead and concentrate more on Icon. Therefore your chance of getting Boustead shares will be slightly more than Icon. Anyway , best of luck to you guys !!!!

i value icon at rm2.46 fy 2015.....as what i confidently analyzed 7e valuing 1.79....

Why you calculate like this ?

Yup. Its good news. Many will skip but my advise dont skip it. Haha