Logindo lowers sights

Indonesian offshore shipowner Logindo Samudramakmur has drastically lowered its expectations for its upcoming IPO.
AHTS Logindo Stout.

AHTS Logindo Stout.

The company is targeting proceeds of INR 357bn ($30m), or half the upper limit it had previously sought from the offering which is due to complete on 11 December.

Logindo has chopped the number of new shares on offer to 127.38 million from 193.28 million previously, it said today without offering any explanation.

Shares will be priced at the bottom of the anticipated range of IDR 2,800 to IDR 3,700 apiece.

Logindo is 51%-controlled by Indonesian investors while Pacific Radiance, which recently completed its own listing in Singapore, owns the remaining 49% though its holding will be diluted by the IPO to 34.4%.

Around 60% of the proceeds are earmarked to fully repay short-term loans from DBS Bank and United Overseas Bank in Singapore, leaving just $12m for vessel acquisitions, Pacific Radiance revealed today in a stock exchange filing.

Logindo owns and operates a fleet of 58 offshore vessels operating in Indonesian waters though it has ambitions to spread into other offshore hotspots.

Pang Yoke Min, executive chairman of Pacific Radiance, said in a statement today: “As one of Indonesia's largest offshore support services providers, PT Logindo is well placed to benefit from the country's strong E&P spending, which is also expected to be the fastest growing in Asia.”

He added: “Other than Indonesia, we are also eyeing other high growth and protected markets such as Latin America, Australia and Africa, to diversify our global footprint.”

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