Sale of 16m new shares expected to raise net proceeds of about $2.1m
By JAMIE LEE 13 October 2009
Marine equipment supplier Jason Marine Group has launched its initial public offering (IPO) for a Catalist listing.
The company, which supplies marine communication and navigation systems, is offering 16 million new shares at 21 cents apiece, which is expected to raise net proceeds of about $2.1 million. Of the invitation shares, 15.5 million shares are for placement and 0.5 million shares for public offer.
The IPO is the 16th this year in Singapore, including mainboard and Catalist listings. Three quarters of the proceeds are to be used for investments and joint ventures (JVs) in new markets. This would include working with companies in Europe that develop niche products that can be added to the company’s product suite, said executive chairman Joseph Foo. It will also source for JVs to extend its reach in new markets.
Jason Marine, which was started by Mr. Foo about 30 years ago, has 42 per cent of its sales coming from Singapore, followed by 27.6 per cent from China, while the remainder comes from the rest of South-east Asia and parts of Europe, the Middle East and the United States.
The company’s net profit for the year ended March 31, 2009 stood at $6.4 million, nearly double the preceding year’s $3.3 million. The company expects more deals to come onboard from China as the country aspires to be the top shipbuilder by 2015, said Mr. Foo.
While competition is expected to be more ‘severe’ in China and a squeeze in margins could result, there is demand for more reliable products and services since ships cannot afford to have faulty machines during their journeys, he added.
The company has seen some orders cancelled during the financial crisis but has started to see new enquiries from yards, said non-executive director Eugene Wong. ‘Three quarters of the world are filled with water, you’ll still need ships to move around,’ quipped Mr. Foo.
CIMB Bank Berhad, Singapore Branch is the sponsor and CIMB-GK Securities is the underwriter and placement agent. Applications close at noon on Oct 19 and trading of Jason Marine shares is expected to start on Oct 21.
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Jason Marine launches IPO for Catalist listing
Sale of 16m new shares expected to raise net proceeds of about $2.1m
By JAMIE LEE
13 October 2009
Marine equipment supplier Jason Marine Group has launched its initial public offering (IPO) for a Catalist listing.
The company, which supplies marine communication and navigation systems, is offering 16 million new shares at 21 cents apiece, which is expected to raise net proceeds of about $2.1 million. Of the invitation shares, 15.5 million shares are for placement and 0.5 million shares for public offer.
The IPO is the 16th this year in Singapore, including mainboard and Catalist listings. Three quarters of the proceeds are to be used for investments and joint ventures (JVs) in new markets. This would include working with companies in Europe that develop niche products that can be added to the company’s product suite, said executive chairman Joseph Foo. It will also source for JVs to extend its reach in new markets.
Jason Marine, which was started by Mr. Foo about 30 years ago, has 42 per cent of its sales coming from Singapore, followed by 27.6 per cent from China, while the remainder comes from the rest of South-east Asia and parts of Europe, the Middle East and the United States.
The company’s net profit for the year ended March 31, 2009 stood at $6.4 million, nearly double the preceding year’s $3.3 million. The company expects more deals to come onboard from China as the country aspires to be the top shipbuilder by 2015, said Mr. Foo.
While competition is expected to be more ‘severe’ in China and a squeeze in margins could result, there is demand for more reliable products and services since ships cannot afford to have faulty machines during their journeys, he added.
The company has seen some orders cancelled during the financial crisis but has started to see new enquiries from yards, said non-executive director Eugene Wong. ‘Three quarters of the world are filled with water, you’ll still need ships to move around,’ quipped Mr. Foo.
CIMB Bank Berhad, Singapore Branch is the sponsor and CIMB-GK Securities is the underwriter and placement agent. Applications close at noon on Oct 19 and trading of Jason Marine shares is expected to start on Oct 21.
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