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Siem Offshore cashes up

Norway's Siem Offshore said today it has raised Nkr900 million ($140.9 million) in a private placement at Nkr8.5 per share, providing it with finance for its entire newbuilding programme.

The placement, in which just under 106 million new shares will be issued, was directed towards Norwegian and international investors and represented about 41.7% of the current outstanding number of shares in the company, it said.

Siem Industries, the company's largest shareholder, was allocated 35.6 million new shares in the issue.

"We are pleased to see this equity issue in place and that the financing of our extensive newbuilding program now is completed," company boss Terje Soerensen said in a statement.

Siem Offshore, which owns and operates support vessels for the oil and gas industry, currently has a fleet of 40 vessels, of which 14 are under construction.

Its fleet includes large tug supply vessels, platform supply vessels, and other support vessels.

Shares in Siem Offshore were trading 6% lower today compared to yesterday’s close of Nkr8.9.

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