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.

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

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.

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.

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.

20k -49.9k are in same band, u get allocated 20k (normally) or sometimes 10k

M'sian investors don't see those crap thingy. The moment they see O&G sector, link to Petronas & GLC. Everyone go crazy with it

ICON OFFSHORE BERHAD

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

IPO - Electronic Share Application, Internet Share Application
The processing fee per Electronic Share Application:

• Affin Bank Berhad - No fee will be charged for application by their account holder

• AmBank (M) Berhad - RM1.00

• CIMB Bank Berhad - RM2.50

• HSBC Bank Malaysia Berhad - RM2.50

• Malayan Banking Berhad - RM1.00

• Public Bank Berhad - RM2.00

• RHB Bank Berhad - RM2.50

• Standard Chartered Bank Malaysia Berhad - RM2.50


The processing fee per Internet Share Application:

• CIMB (www.eipocimb.com) - RM2.00 for payment via CIMB Bank Berhad or via Malayan Banking Berhad

• CIMB Bank Berhad (www.cimbclicks.com.my) - RM2.00 for applicants with CDS Accounts held with CIMB and RM2.50 for applicants with CDS Accounts with other ADAs

• Malayan Banking Berhad (www.maybank2u.com.my) - RM1.00

• AFFIN Bank Berhad (www.affinOnline.com) - No fees will be charged for application by their account holders

• RHB Bank Berhad (www.rhb.com.my) - RM2.50

• Public Bank Berhad (www.pbebank.com) - RM2.00

Bumi application may get higher chance than non-bumi bcoz more shares allocated

Gud luck everyone

ICON OFFSHORE BERHAD

Opening of application 30/05/2014
Closing of application 06/06/2014 @ 5pm
Balloting of applications 10/06/2014
Allotment of IPO shares to successful applicants 23/06/2014
Tentative listing date 25/06/2014

Icon Offshore Bhd - Making An Iconic OSV Entry

Kenanga gave TP of RM2.10.

http://klse.i3investor.com/blogs/kenangaresearch/53786.jsp

balloting table only.
Results next day 7pm onwards

how u managed to get the cornerstone portion?

Maybe.
What I heard u need to "apply" min 2.5milion shares to do it. Donno true or not?

Looks at the success %. So LOW

This post has been edited by davinz18: Jun 10 2014, 05:50 PM

based on my experience applying IPO, anything below 10% is NO chance (for myself)