Nordcap Offshore has revealed it has ditched plans to acquire a fleet of 10 platform supply vessels after pulling the plug on a proposed initial public offering on the Oslo bourse due to lack of investor interest.
The Liechtenstein-based company had been hoping to raise Nkr1.2 billion ($202 million) in the equity issue to bankroll its acquisition of the PSVs, of which eight are newbuilds under construction at Asian yards.
It was offering 48.4 million shares at a price of Nkr25 apiece in the equity issue, backed by Arctic Securities, RS Platou Markets and ABN Amro Bank.
However, Nordcap said in a terse statement on Wednesday the IPO “has been cancelled as the demand, despite being significant, did not meet the targeted equity requirement”.
It added the company, led by shipping industry veteran Willem Dekker as chief executive, had also withdrawn its application for a listing on the Oslo Axess exchange and that its board would reconsider an offering at a later date.
The failure of the IPO has effectively kyboshed the ambitious fleet acquisition effort by the market newcomer, which was also aiming to use bank loans to finance the vessels.
A company spokesman informed Upstream by email: “Having cancelled the IPO process, the company is not going to purchase the initial fleet of 10 vessels.”
He added though that Nordcap’s management “may come back to the capital markets to purchase offshore supply vessels as it is convinced of the offshore market's growth potential”.
The vessels were to be acquired for between $28 million and $48 million each.
Two of them are already in the water while three newbuilds are being built at the ASL Shipyard and three more at DDW PaxOcean, both in Singapore, with the remainder under construction at Vard Vung Tau in Vietnam.
Five of the newbuilds are due to be delivered by October with the remaining units coming over the next two years.
However, the company failed to address questions on whether it would face any financial liabilities due to its decision not to acquire the vessels, with the spokesman only saying it “can not give any further information at this point in time”.