EMAS Offshore (IPO)

EMAS Offshore has registered its prospectus for its secondary listing on SGX. The group will offer up to 48.6m new shares for subscription at $1.21 each (NOK6.12), comprising a public offer of 9.1m shares and 39.5m placement shares. Accordingly, EMAS’ share price in Oslo jumped 7.1% in the current session to NOK6.16. Net proceeds of $53.8m will be used to finance the cash portion of the consideration for the acquisition of the Offshore Support Companies under the Business Combination Exercise (58%), and for working capital (42%). Separate from and immediately following the close of the offering, Ezra is proposing to sell up to ~20.6m of its EMAS shares at $1.21 each, in a secondary sale amounting up to US$20m. The secondary sale will only be to the Oslo-listed EMAS shareholders who were eligible to vote at the EGM held on 22 Aug, to limit any dilution effects caused by the Singapore offering. EMAS’ offer price implies a valuation of 4.6x annualized proforma 9MFYAug14 P/E and 0.77x proforma P/B. Post the offering, secondary sale and business combination, and assuming the over-allotment option (9m shares) is not exercised, EMAS will have market cap of $532m. Indicative timetable 29 Sep, 6pm: Public offer opens 2 Oct, 12pm: Public offer closes 8 Oct: Commence trading on SGX