Keyfield hopes to raise RM188 million from IPO
Keyfield International Bhd, en route to a listing on Bursa Malaysia’s Main Market on April 22, plans to raise RM188.1 million from its initial public offering (IPO).
At an issue price of 90 sen per share, the IPO entails an issuance of 209 million new shares. Upon listing, the group will have a market capitalisation of RM720 million.
Of the new shares, 40 million shares (5%) will be made available to the Malaysian public while 24 million shares (3%) will be for its eligible persons including key senior management, crew members, employees and business associates.
Some 73 million (9.1%) are earmarked for private placement to bumiputra investors approved by Ministry of Investment, Trade and Industry, while the remaining 72 million (9%) are for selected investors by way of private placement.
The proceeds shall primarily be utilised to redeem Keyfield’s cumulative redeemable non-convertible preference shares (CRNCPS) at 32.7%, as well as to settle the balance purchase consideration for two vessels, namely Blooming Wisdom (34.6%) and Keyfield Helms 1 (18.6%).
The CRNCPS were previously issued to acquire three vessels, namely Keyfield Compassion, Keyfield Commander and Keyfield Grace.
The remaining proceeds shall be utilised for repayment of bank borrowings (1.6%), working capital (7.7%) and listing-related expenses (4.8%).
Post utilisation of IPO proceeds, the group’s pro forma gearing will be 0.1 times.
In addition, it targets to pay out 20% of profits as dividends.
The group is principally involved in the chartering of vessels, particularly accommodation work boats (AWB).
Presently, the group owns
11
Malaysian-flagged vessels with capacities ranging from 50 to 500 persons.
Group CEO and executive director Datuk Darren Kee said that it is one of the country’s leading fleet owners of self-propelled AWB.
“We aim to strengthen our market share through the expansion of our fleet, in addition to broadening our service offerings, which include the chartering of anchor handling tug and supply vessels that can also serve as smaller sized accommodation vessels to meet the growing demands of the local oil and gas industry,” said Kee during his speech at its IPO prospectus launch yesterday.
On market share, the group has garnered an estimated 23.7% of the AWB chartering market in Malaysia last year.
Applications for the public issue was made available yesterday and will close on April 3.
M&A Securities Sdn Bhd is the principal adviser and underwriter for Keyfield’s IPO.
It is also the joint placement agent together with Maybank Investment Bank Bhd.