Icon Offshore Berhad IPO

Icon Offshore BerhadIcon Offshore Bhd, an offshore support vessel (OSV) provider, is scheduled to be listed in Main Market of Bursa Malaysia on 25th June 2014.

The Initial Public Offering (IPO) consists of 510.77 million shares comprising offer for sale up to 289.02 million existing shares and public issue of 221.75 million new shares. 460.15 million will be offered to institutional investors, 15.30 million shares to the eligible directors and employees while the remaining 35.32 million shares will be opened to the Malaysian public.

The retail price of the offering is RM1.85 per share at RM0.50 par value. The final retail price will be determine through book building exercise. If the final retail price is less than the retail price, there will be a refund to the retail investors.

The IPO will raise about RM410 million in proceeds. Out of this, RM166.2 million will be use for vessel fleet expansion, RM124 million for repayment of bank borrowing, RM54.5 million for repayment to Hallmark RM42,6 million for working capital & RM23 million is for listing expenses.

Icon Offshore is the result of merging of two pure-play OSV companies within Ekuinas’ portfolio namely Tanjung Kapal Services Sdn Bhd and OMNI Petromaritime Services Sdn Bhd.

This marks Ekuiti Nasional Bhd’s first spin-off since it was mandated in 2009 to invest in Bumiputera companies to build their capacity.

The company has a fleet of 32 vessels, out of which 25 are anchor handling tug and anchor handling tug supply vessels operating in waters off Malaysia, Vietnam and Qatar. 65.6% of its vessels was under long-term charter (more than a year), with an average contract duration of 4.6 years.

Icon Offshore, ranked among the top three OSV companies in Malaysia with an annual turnover of RM270mil and has a strong order book of long-term contracts with a value of RM500mil.

Around nine cornerstone investors are expected to take up most of the institutional offer, on which there is a six-month lock-up period.

More information regarding the company can be found in Icon Offshore webpage.

Currently, Icon Offshore does not have any fixed dividend policy.

The table below is the financial summary for Icon Offshore Bhd.

FYE 2011 FYE 2012 FYE 2013
Revenue (RM’000)  226,487  291,705  334,863
Profit after Tax (RM’000)  22,958  37,629  113,601
Earnings per Share (sen)*  1.95  3.20  9.65
Price Earnings Ratio (x)*  94.86  57.88  19.17

* Based on number of shares post IPO

Maybank Investment Bank is the principal adviser, joint global coordinator, joint bookrunner, managing underwriter and joint underwriter for the of the IPO.

For those who are interested inIcon Offshore IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 6th June 2014 at 5pm. Tentative balloting date is on 10th June while the allotment date is on 23th June 2014.

Icon Offshore stock name in Bursa Malaysia is “ICON”.

View Icon Offshore prospectus in Bursa Malaysia webpage.

What do you think about Icon Offshore IPO? Are you going to subscribe?

7 comments… add one
  • Which one is better to apply? This or boustead ?

    • I think both are OK. If you have enough capital, why not apply for both.

      • I have yet gone through ICON prospectus. Do you have any idea which listed company involved in the similar OSV business?

        • I came across this article, they are many OSV listed companies in Malaysia.

          The Star

  • Hi there, I am sorry about my first comment, I wanted to check if my comments will go in or not. Anyway I want to know more about shares etc, and what are the risk, as I also would like to invest on both of this boustead and Icon, can you please help me understand? and how the profits are counted, I am totally no idea on this stuff. Thank you again

    • Axion,

      Kindly take time to through the company prospectus. You must understand the company if you want to be confidence with your investment.


  • Target Price / Fair Value

    Hong Leong Investment Bank – RM2.08
    Kenanga Investment Bank – RM2.10
    Public Investment Bank – RM2.01
    RHB Investment Bank – RM2.10


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