Marco Polo Marine subsidiary launches succesful Indonesian IPO

$14.3 million raised in gross proceeds.

In a release to the Singapore Exchange, listed marine logistic firm Marco Polo Marine announced that its erstwhile associate company, PT Pelayaran Nasional Bina Buana Raya Tbk (“PT BBR Tbk”), has successfully concluded its initial public offering (IPO) with listing on the Indonesian Stock Exchange slated for 9th January 2013.

It added that following the completion of the IPO and with the Company consequently becoming the single largest shareholder and exerting de facto control over the operations of PT BBR Tbk, PT BBR Tbk will be deemed a subsidiary of Marco Polo Marine and will have its financial results consolidated with the Group based on Financial Reporting Standard 27.

With 600 million new shares issued at IDR230 each, the IPO raised total gross proceeds of IDR138 billion, or about US$14.3 million (based on the prevailing exchange rate of USD1 : IDR9,650).

"In spite of the uncertain and subdued market sentiments, in part due to concerns over the lingering Euro zone debt crisis, the overcast induced by the US fiscal cliff issue as well as the slowing down of the Chinese economy, the IPO had been well-received by the investment community," said Marco Polo Marine.

The fixed allocation tranche for 575.8 million new shares, almost covering the entire IPO share offering, was fully placed out to institutional investors and high net worth individuals. Coupled with the retail tranche of 24.2 million new shares being approximately 22 times subscribed by retail investors, the IPO garnered a total order of 840.9 million new shares, representing an overall subscription of 1.40 times.

"Through the IPO, PT BBR Tbk will significantly strengthen its equity base as well as lower its debt and gearing levels. As a separate listed entity, it is also able to tap on more avenues for financing based on its own merits in pursuing its expansion plans," the company added.

"Indonesia’s offshore oil and gas transport/logistic sector is poised to continue its promising rising trajectory in view of growing market demands and the 'restricted' supply of Indonesian-flagged vessels prompted by the Indonesian Cabotage Principle. We will continue to develop PT BBR Tbk as our established Indonesian platform and entrench our market presence by investing in more offshore vessels coupled with being even more discerning with respect to customers’ needs," said Mr Sean Lee Yun Feng, Marco Polo Marine Ltd CEO.