Macquarie Group is looking to float oil and gas services firm Miclyn Express Offshore in an initial public offering that could raise up to $365 million.
The proposed float is a play on the growth prospects of Asian oil and gas prospects, especially in and around Australia.
The company said yesterday it plans to offer about 160 million shares ranging from $1.85 to $2.30 apiece.
Macquarie Group plans to keep at least 30% of the shares following the completion of the offer.
The float is another step into the resources servicing business by Macquarie and one of its investments.
For some investors the float recalls the Boart Longyear float a few years ago from Macquarie.
Boart Longyear was a drilling and mining services contractor; Miclyn is different in that it services the offshore oil and gas sector, and is being floated at a far different time in the business cycle.
The company says it aims to meet rising demand from the oil and gas industry as more projects proceed off the coasts of countries such as Australia.
Miclyn said it plans to expand its fleet, pursue “growth opportunities” and pay down debt.
"The Offer comprises a retail offer and an institutional offer and Miclyn Express Offshore will issue up to approximately 159.6 million Shares.
"The Offer represents 59% of the total Shares in Miclyn Express Offshore, with the remaining 41% to be held by the existing shareholders and management on completion of the Offer.
"Post listing, Miclyn Express Offshore will have a market capitalisation of approximately A$502.0 million – A$623.7 million (based on the midpoint of the Indicative Price Range)," the company said in a statement on its website.
"The Offer will enable Miclyn Express Offshore to purchase MEO Finance Company Limited (the company that currently owns the Miclyn Express Offshore business) and 50% of Samson Maritime.
"Funds raised under the Offer will be used to pay a portion of Miclyn Express Offshore’s debt balance, pay break fees on related interest rate hedging arrangements, pay its portion of Offer costs and establish a capital structure to pursue growth opportunities."
Miclyn said it will seek to list on the Australian stock exchange by April 6.
The company provides offshore ship and barge services to the energy industry across Southeast Asia, Australia and Middle East.
Its big competitor is Mermaid Marine Australia.
"The Group charters a diverse range of OSVs, Crew/Utility Vessels, Barges and Coastal Survey Vessels to a wide range of customers operating across all phases of the offshore oil and gas cycle, namely: exploration, development and production," the company says on its website.
"Vessel Chartering is Miclyn Express Offshore’s primary business and accounted for 98.5% of the Group’s FY2009 revenues.
"Miclyn Express Offshore has a strong local presence in many of its markets with access to support centres in Indonesia, Saudi Arabia, Thailand and the UAE and joint ventures and agency agreements in Thailand, Indonesia and Saudi Arabia.
"Miclyn Express Offshore also provides chartering services to the marine civil construction industry, in particular providing Barges to support major projects for customers including Marine & Civil and John Holland in Australia.
"The Group operates a vertically integrated business model through its Vessel Chartering and Shipyard businesses.
"The Shipyard provides in-house vessel Newbuilding, conversion, repair and maintenance services, as well as third party vessel conversion, repair and maintenance services when spare capacity exists.
"The Shipyard is strategically located in Batam, Indonesia, approximately 20km off the coast of Singapore, providing the Group with a competitive cost and time advantage and enabling it to utilise the Shipyard as a berthing base for its fleet deployed in South-East Asia."
Macquarie plans to cut its stake in Miclyn to 30% from 59% while Ray Rider, an entity connected to Miclyn’s founder, will cut its stake to 10% from 40%.
The company’s top two managers will retain the 1% they already own.
Macquarie Capital, JP Morgan and Morgan Stanley are joint lead managers on the offer.
