Indo Straits, a marine construction and engineering services firm, has on Wednesday announced plans to launch an initial public offering (IPO) in Indonesia, Seatrade Asia reported.
The subsidiary of Singapore-listed coal exporting firm Straits Asia plans to offer 100m shares, representing 18.18% of its enlarged capital. The offering is slated for 1-5 July and the listing on the stock exchange is scheduled for 12 July, according to a prospectus.
Indo Straits intends to use about 36% of the IPO proceeds to partially repay Bank Permata, which it owes $12.85m. Another 50% of the proceeds will be allocated to fund the acquisition of mechanical crane with lifting capacity of 30,000 tonnes a day. This could cost around $5.8m. The remaining of proceeds will be used for working capital. The company has yet to set a target price range for the listing. Indo Straits owns a fleet of 43 units of floating equipment of various sizes, comprising mainly of clamshell dredger, cutter suction, hopper barge and tug boat.