* POSH prices IPO at S$1.15 per share, near bottom of
* POSH focuses on service to production, maintenance
* POSH keen on growing offshore accommodation business
(Adds details about the company's outlook, comments from
By Elzio Barreto and Rujun Shen
HONG KONG/SINGAPORE,April 17 PACC Offshore
Services Holdings (POSH) could raise at least S$388.27 million
($311 million) after pricing its initial public offering near
the bottom of the pricing range indicated earlier, the company
said on Thursday.
The deal comes as Singapore's IPO market has struggled in
recent years. Most big-ticket listings in Asia opt for Hong Kong
where there is more robust demand from Chinese and international
POSH priced the deal at S$1.15 a share against an indicative
price range of S$1.13 to S$1.24 a share, it said in its
prospectus. The company is selling 337.625 million shares
excluding the greenshoe option.
"We priced it on a basis that we felt comfortable in terms
of demand of institutional shareholders coming in," Chief
Financial Officer Geoffery Yeo told reporters.
Bank of America Merrill Lynch, DBS Bank and
Oversea-Chinese Banking Corp Ltd are the joint issue
managers, bookrunners and underwriters.
POSH, which is part of the empire of Malaysia's richest man,
Robert Kuok, operates 112 vessels and is the largest Asia-based
international operator of support vessels for offshore
The offshore support vessel division contributed over half
of revenue in 2013. Yeo said POSH was focusing on expanding the
services, production and maintenance business, rather than
exploration, as it was "less prone to volatility".
International oil companies have been tightening spending on
exploration and production after a decade of double-digit
growth, hurting oilfield service industry along the way.
Earnings from the offshore accommodation segment, which
provides vessels that can give offshore production operations
extra lodging, engineering, construction and storage capacity,
is expected to double to 50 percent by the end of 2015, POSH
"We believe the (offshore accommodation) fleet is ageing and
needs replacement, at the same time the market is growing," said
Chief Executive Officer Gerald Seow.
POSH is taking delivery of several accommodation vessels
this year and next, including two large accommodation
semi-submersibles that could each provide 750 beds for offshore
POSH's IPO followed that of Pacific Radiance Ltd,
an offshore support vessel operator, last November. Pacific
Radiance share price closed at S$1.085, up nearly 11 percent
from the opening price when the stock started trading.
($1 = 1.2503 Singapore Dollars)
(Additional reporting by S. Anuradha of IFR in SINGAPORE;
Editing by Miral Fahmy)