Wednesday 26 February 2014

Carimin Petroleum plans Main Market listing

Carimin Petroleum Bhd, one of the winners of Petronas’ RM10bil Pan Malaysia hook-up and commissioning umbrella contract last year, has proposed to list on the Main Market of Bursa Malaysia.

The offshore oil and gas services provider said in a draft prospectus filed with the Securities Commission that it was selling 28.47% of its enlarged share base of 233.88 million shares.

This consists of 60.7 million new shares and 5.89 million existing shares under an offer for sale to select investors.

Carimin, which holds a Petronas licence, plans to sell 11.69 million of the new shares to the public, three million to eligible directors and staff, and 46 million to identified investors.

M&A Securities Sdn Bhd is the sole adviser, underwriter and placement agent for the initial public offering (IPO).

Carimin, run by a number of former Petronas executives, said its order book stood at RM1.02bil, comprising mainly hook-up and commissioning and production platform system maintenance and upgrading works worth RM903.5mil, and RM114.2mil for manpower supply services.

The firm intends to use 52.9% of its IPO proceeds to buy an offshore supply vessel (OSV), 20.6% to develop a minor fabrication yard, 12.4% to repay bank borrowings, 7.9% for working capital and 6.2% for listing expenses.

A portion of the proceeds would be put into a deposit for an accommodation workboat, a type of OSV, estimated at RM95mil. The rest of the purchase is to be funded by bank debt.


Carimin currently owns an anchor handling tug supply vessel and a 14% stake in SK Offshore, which in turn owns an accommodation vessel.

The firm also plans to grow its 78,000 sq ft fabrication yard in Kemaman, Terengganu, to reduce its reliance on rented equipment and facilities.

Its promoters and substantial shareholders who will pare down their interests under the IPO include Mokhtar Hashim, Carimin managing director, and Platinum Castle Sdn Bhd. Their stakes would be reduced to 31.5% and 12.8%, respectively, following the listing.

Over a three-year period up to last year, Carimin’s revenue expanded at a compound annual growth rate of 27.2% to RM325.79mil, and after-tax profit also by 27% to RM19.5mil.

It posted single-digit after-tax margins of 6.02%, 4.56% and 5.99% in the financial years through 2013.

lazada