SBI Offshore

SBI Offshore: Will be raising $16.2m from placing new shares to four investors to raise $16.2m. From the placement, Mirzan Mahathir will emerge as the third largest shareholder with a stake of 10.8%, via his BVI registered company CE Ventures Offshore. Mirzan Mahathir is the eldest son of Malaysia’s former prime minister, Tun Mahathir bin Mohamad. He is a veteran in the oil and gas industry, and a non-executive director of Petron Corp in the Philippines. The others taking up the placement are Millennium Marine (Singapore-registered firm involved in offshore and marine activities in China and controlled by Chinese investor Guo Hairong), Osith Ramanathan and Pang Shun Pen, the latter two being founder and co-founder of private investment management firm Ostara Capital. SBI Offshore’s stock price has increased two-fold between Aug 19 and Sep 19, as SBI Offshore said was in talks with a Middle East-Chinese consortium to build up to five jack-up rigs. A week before that, it announced that it had bagged a US$24 million jack-up rig design and engineering contract from the consortium which comprised six parties with varied interests in the oil and gas sector. The group said that it was in early discussions on several sizeable projects involving the engineering, procurement and commissioning of drilling equipment packages. SBI Offshore is trading at 18.6x trailing P/E and 1.4x P/B.