Carimin Petroleum public tranche oversubscribed 22.1 times

Carimin Petroleum Bhd’s initial public offer of 11.70 million shares at RM1.10 for the public was oversubscribed by 22.1 times.

The offshore oil and gas (O&G) support services company said on Friday there were 13,421 applications for 269.70 million shares.

The IPO comprised of a public issue of 60.7 million new ordinary shares and an offer-for-sale of 5.9 million vendor shares.  Carimin is scheduled to list on the Main Market of Bursa Malaysia on Nov 10.

Its managing director Mokhtar Hashim said despite the current volatility in the O&G sector, the significant oversubscription of its IPO reflected the investing public's strong confidence in the company’s growth prospects and its underlying fundamentals as one of the leading providers of O&G support services.

“Carimin's upcoming listing is a key milestone that grants us access to capital for capacity building, to better execute ongoing projects and strengthen our technical capabilities. At the same time, being a listed entity backed with strong track record would boost our profile for future tenders," he said.

The company provides offshore hook-up and commissioning (HUC), platform maintenance services, and supplies skilled workers for the O&G industry in Malaysia. 

Its clientele include O&G majors such as Petronas Carigali, Shell, Murphy Oil, Talisman, Exxon Mobil and Newfield.

As at end-September 2014, Carimin’s work value in hand was RM900.8mil and  scheduled for delivery until 2018.

For the FY ended 30 June 2011 to 2014, Carimin recorded a 15.7% in compounded annual growth rate (CAGR) in revenue to RM245.6 million. Net profit rose 32.0% CAGR to reach RM21.9mil in the same period.

Of the RM66.80mil to be raised from the IPO, RM35.3mil would be used to purchase an accommodation workboat, RM12mil to upgrade the group's fabrication yard in Kemaman and RM8mil to repay of bank borrowings. Another RM8mil would be used as working capital and the remaining RM3.5mil to defray listing expenses.