(EnergyAsia, October 23 2012, Tuesday) — Gaylin, a Singapore-based oil rigging and lifting services provider, has launched an initial public offering (IPO) of 110 million shares at S$0.35 each for listing on the mainboard of the Singapore Exchange Securities Trading Limited (US$1=S$1.22).
At S$0.35 per share, the offering is priced at a price earnings ratio of 8.1 times based on the company’s historical earnings per share of S$0.043 cents for the financial year ended March 31 2012 and pre-offering share capital of 300 million shares.
The IPO comprises five million shares for the public and 105 million for private placement. It will be managed by CIMB Bank Berhad’s Singapore Branch with CIMB Securities (Singapore) Pte Ltd acting as the underwriter and placement agent.
Gaylin said it has granted CIMB Securities (Singapore) an over-allotment option to subscribe for up to 22 million additional shares, representing not more than 20% of the new shares.
Assuming the over-allotment option is not exercised, the offering represents 26.8% of the company’s enlarged share capital of 410 million shares after the IPO on October 23.
Gaylin, which began operating in 1974, said its board intends to recommend and distribute dividends of at least 30% of its net profits attributable to shareholders for FY2013 and FY2014.
Gaylin reported net profit of S$6.9 million in FY2010 and S$13 million in FY2012 on revenues of S$68.6 million and S$71.4 million for the two years.
As one of the Singapore’s largest rigging and lifting services providers to the offshore oil and gas industry, Gaylin owns and operates two warehouses and a fabrication facility in Singapore and a warehouse in Vietnam. It expects to start up new facilities in Malaysia in December.