PACC Offshore

PACC Offshore (POSH): Macquarie is listing its first warrants for the stock. Code Name Type Expiry Exercise Price U7OW POSHMBeCW150102 Call 2-Jan-15 1.05 U7PW POSHMBeCW150202 Call 2-Feb-15 1.20 POSH is the biggest IPO in Singapore this year with the retail portion ~5x subscribed. The IPO has a market capitalization of > $2b and has raised gross proceeds of $388.3m. Despite being the largest IPO, the shares had a muted debut, ultimately ending its first day of trading at $1.155, a touch above its IPO price of $1.15. POSH is top 5 globally and the largest Asia-based international operator of offshore support vessels (based on the number of vessel it owns). Besides having over 112 diversified Offshore Support Vessels (OSVs), it also has one of the youngest Anchor Handling Tug Suppler (AHTS) and Platform Supply Vessel (PSV) fleet. This means that it is more fuel efficient and environmental friendly as compared to the other offshore marine companies. POSH has a highly experienced and proven team with its CEO having more than 40 years of experience. In addition, POSH has strong links to the Kuok empire. Post IPO, the number of shares outstanding is 1.82m with the Kuok Family holding ~ 75.8% of the co. POSH’s direction going forward . Chairman of POSH, Kuok Khoon Ean is positive about the direction of the company and said that although access to new energy resources are getting “less easy, further offshore, deeper oceans. Also, a lot of existing infrastructure requires repair and maintenance”. However the company’s strategy is to “follow the industry trend and apply its resources and assets accordingly. That is why it has ventured into a major shift in deeper offshore assets and accommodation vessels, which it sees a growing increase in demand”. Until 1Q15, the firm has ~ $600m worth of ships to be delivered and has plans for further capital expenditure of another $291m.