Kim Heng to splash IPO cash

Singapore-based Kim Heng Offshore & Marine is targeting yard and fleet expansion after completing an initial public offering on the city’s bourse.

The rig repair and offshore services specialist bagged net proceeds of S$36.4 million (US$28.45 million) from the listing of 174 million shares at S$0.25 apiece.

Kim Heng said it intends to use S$20 million of the proceeds to enhance its yard facilities and also to expand its own fleet of offshore vessels.

A further $7 million will be spent on expanding its service offerings to the oil & gas industry, with possible mergers, acquisitions, joint ventures or other business alliances in the offing.

It will also use $9.4 million for general working capital purposes, it said.

Of the 174 million shares floated, 3 million were put on public offer and 14 million went to underwriters in overallotments.

The company expects to begin trading on Singapore’s Catalist bourse on Wednesday.

Kim Heng has two shipyards in Singapore and a fleet of 40 vessels, such as tugs and crane barges.

Most recently it was involved in performing thruster installation for the semi-submersible rig Sevan Louisiana unit off Namibia.

Their newbuild yard has also delivered two shallow-water pipelay vessels, including McDermott's LB32 in 2010. 

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