Compare that amount with the maximum possible offer price of S$1.13! Strange, no? Which makes me to think twice to subscribe to this IPO. No, make it thrice!
STX OSV Holdings - a subsidiary of South Korean shipping group STX - yesterday ended speculation about the offer price for its listing on the Singapore Exchange (SGX).
In its registered prospectus, the specialised offshore vessel builder priced its the offering of about 325.64 million shares at 79 cents each. The offer comprises 180 million new shares from the company and 145.64 million vendor shares from STX Europe Holding AS.
STX OSV is offering a public tranche of 16.28 million shares. The remaining 309.36 million are for international placement.
The total pool of shares may increase if an over-allotment option of 48.8 million shares is exercised by Goldman Sachs Singapore, stabilising manager for the initial public offer.
STX OSV estimates net proceeds from the IPO at $131.6 million - to be used for boosting capacity and equipment at STX OSV's shipyards in Vung Tau, Vietnam and Tulcea, Romania; for building a second shipyard in Brazil and for expanding power and automation capabilities at STX Norway Electro.
Goldman Sachs is the IPO's sole global coordinator, book-runner and issue manager.
The public offer opens today and closes on Nov 10. The shares are expected to start trading on the SGX main board on Nov 12.
From Business Times, "STX OSV to raise $131.6m in SGX listing".
STX Corp. tumbled the most in almost 22 months in Seoul trading and STX Offshore & Shipbuilding Co. plunged after an offshore-vessel making affiliate priced its initial public offering at the bottom of the range.
STX Corp., the holding company for South Korea’s STX Group, slumped 13 percent, the most since January 2009, to close at 28,500 won on the Korea Exchange. STX Offshore dropped 15 percent, the most since November 2008, to 23,900 won. STX Engine Co. fell 12 percent to close at 36,800 won.
STX OSV yesterday priced its IPO shares at 79 Singaporean cents apiece, compared with a maximum possible price of S$1.13, according to terms sent to investors. The company will use the expected $142.2 million gross proceeds from the sale to help build a second shipyard in Brazil and boost capacity at other facilities making rig-support vessels.
“Investors seem to be disappointed,” said Lee Sang Hwa, a Seoul-based analyst at Hyundai Securities Co. “STX OSV sold fewer shares than anticipated and its IPO was priced at a low level, reducing the amount of cash inflow to the company.”
STX OSV is selling 180 million new shares, while STX Europe Holding AS is offering 145.6 million shares. STX Offshore is the largest shareholder in STX Europe, ahead of STX Engine.
Shares of STX OSV begin trading Nov. 12. DBS Group Holdings Ltd., Goldman Sachs Group Inc., Nordea Bank Finland Plc and Royal Bank of Scotland Plc arranged the IPO.
From Bloomberg, "STX Tumbles Most in Two Years After Unit's IPO Priced at Bottom of Range".
