PACC Offshore Services

PACC Offshore Services: PACC Offshore Services, part of the empire of Malaysia richest man- Robert Kuok, debuts this morning with its IPO price of $1.15. The 252m shares that were up for offer were reportedly 3x subscribed, mainly driven by the public offer tranche of 40m shares. We caution investors that while demand in the international (institutional) offer tranche met the available supply, we do not rule out that the relatively larger shareholders may pare down their stake if the allocation given was above their requirements. PACC is the largest Asia-based international operator of offshore support vessels and one of the top five globally. The group has a fleet of 112 vessels that serves the offshore oilfields in Asia, Africa and Latin America. Based on the IPO price of $1.15, PACC is valued at a premium 22.5x P/E compared to the relatively smaller offshore providers' average of 10.2x, while the 1.4x P/B is in line with peers.