(EnergyAsia, July 29 2013, Monday) — Singapore-based oil explorer Rex International Holding is looking to raise up to S$85.25 million through a listing on the local Catalist exchange. (US$1=S$1.26).
Rex, which claims the use of superior exploration technology to greatly enhance its success for finding oil and gas, is offering a total of 142.5 million shares at S$0.50 apiece and the option for an additional 28 million shares in the event of oversubscription.
The bulk of 140 million shares will be allotted through various placements, leaving the public to bid for just 2.5 million shares in an offer that closes today.
With a market value of at least S$488.3 million excluding the additional shares, Rex said it will be one of the largest companies to be listed on Calatlist when trading begins on July 31.
In a press statement, the company said its founding shareholders, Karl Lidgren and Hans Lidgren, have developed a set of innovative oil exploration technologies to enable the company to visualise hydrocarbons in the sub-surface and locate oil reservoirs through advanced analysis of conventional seismic data.
Through Rex International, the Swedish brothers will deploy the technologies to significantly enhance offshore and onshore hydrocarbon discovery to shorten the exploration process, reduce cost and improve profitability.
Another relative, Mans Lidgren, who is Rex’s CEO, said:
“The oil and gas industry is characterised by high risks and high returns. With Rex Technologies, we can change the risk-reward trade-off in oil exploration to one which is of a lower risk while maintaining high returns. We have finally been able to solve what the oil industry has been looking for all these years – the ability to actually see the oil in the ground.”
Rex said it has lined up an “active drilling and portfolio growth” programme in the US, Middle East and Norway over the next 24 months while screening for opportunities in Southeast Asia, Australia and New Zealand.
With the funds raised from the IPO, the company said it plans to pay off its only debt of S$2.4 million owed as loan from a controlling shareholder.
PrimePartners Corporate Finance Pte Ltd (PPCF) is the manager, sponsor, and co-placement agent for Rex’s shares with UOB Kay Hian Private Limited as a co-placement agent, underwriter and stabilising manager and DBS Vickers Securities (Singapore) Pte Ltd as a co-placement agent.
“This is the first Catalist company to date with an international placement exercise, an over-allotment option and a public offer. We have received strong institutional support for Rex International Holding,” said Mark Liew, PPCF’s managing director for corporate finance.