Nordic Group, a homegrown supplier of automation systems to the oil and gas industry, plans to raise about S$20 million through an initial public offering on the Singapore Exchange.
Nordic is offering 110 million new shares priced at 20 cents each. Two million shares have been set aside for the public, while 108 million shares are available by way of placement.
Nordic plans to use S$6 million of the proceeds to increase production capacity, expand its sales network and fund its operations in China.
It plans to deploy more sales personnel in areas where shipyards are concentrated -- such as Guangzhou, Jiangsu and Liaoning -- by the end of the year.
Another S$1 million will be used to expand its maintenance-repair-overhaul and trading divisions so as to tap into more opportunities for conversion and retrofitting works for existing vessels.
The remaining proceeds will be used for product development, acquisition of companies and technologies as well as general working capital.
The public offer opened on October 29 and will close at noon on November 8.
Listing and trading of Nordic's shares on the SGX Mainboard are expected to start on November 10.
From Channel NewsAsia, "Nordic Group to raise about S$20m in IPO".
NORDIC Group Limited - a solutions provider for the marine and offshore sector - is expecting to raise $22 million from its initial public offering (IPO), which opened yesterday.
The group - which is headquartered in Singapore - is offering 110 million new shares at 20 cents each. Two million of the shares are available for public subscription and the remaining shares will be offered by way of placement.
The 110 million new shares represent about 27.5 per cent of the group's enlarged share capital of 400 million shares.
The firm's activities fall into three business divisions - systems integration, maintenance, repair and overhaul and trading, as well as precision engineering.
'We have seen the bottom of the industry and we should be riding the up-cycle from here,' said Chang Yeh Hong, chairman and chief executive officer of Nordic Group.
Of the net proceeds of about $20 million, $6 million will go towards ramping up its production capacity, sales network and operations in China. A sum of $1 million will be spent on expanding its MRO and trading division, while $6 million will be held as working capital.
The group plans to issue dividends of up to 30 per cent of profits attributable for financial year 2010 to shareholders.
'This is to reward our existing shareholders and welcome new shareholders. We do not have a dividend policy yet,' said Mr Chang.
Among the risk factors highlighted by the company in its prospectus were its dependence on the marine and offshore oil and gas industries, as well as its reliance on the Singapore and China markets.
The IPO will close on Nov 8 at noon. Trading of the shares is expected to start on Nov 10. Collins Stewart is the issue manager, underwriter and placement agent of the offer.
From Business Times, "Nordic Group to raise $22m from IPO".
