SNAP with in HOURS by FUND - Wall Street Journal >> $$$$$$$
Shares of Malaysia's Icon Offshore Bhd., which started taking orders Friday for its up to $300 million initial public offering, were snapped up within hours of opening bookings, people familiar with the matter said.
The shares are being sold at between 1.80 ringgit and 1.85 ringgit ($0.56 and $0.58) a piece, two people involved in the deal told The Wall Street Journal. Icon Offshore, which owns a fleet of offshore support vessels, will price the shares on June 10 ahead of its listing slated for June 25, according to its prospectus.
"We've started the roadshow and the shares were fully sold within hours," one of the people said.
Icon Offshore is backed by nine so-called cornerstone investors, who have taken up more than half of the IPO shares. These investors—including AIA Bhd., Hwang Investment Management Bhd., Nomura Asset Management Bhd. and Permodalan Nasional Bhd.—have agreed to hold on their shares for at least six months after the listing.
The company is planning to use the proceeds from its IPO to expand its fleet and repay bank borrowings. The Malaysian-based company owns 32 ships for charter and is seeking to add another four vessels to its fleet.
This is the best part of the HOT ICON OFFSHORE IPO...CORNERS STONE HOLD almost 55 % of the share OFFERED & CAN'T SELL for 6 MONTHS.
The IPO attracted and secured leading cornerstone investors including tycoon Tan Sri Chua Ma Yu, AIA Bhd., Hwang Investment Management Bhd, JF Asset Management Ltd, Lembaga Tabung Haji, Maybank Asset Management Sdn. Bhd., Nomura Asset Management Sdn. Bhd., Permodalan Nasional Bhd, , and UOB Asset Management (Malaysia) Bhd.
"The cornerstone investors will hold 53.8% of the total offering, and will be subject to a lock-up period of six months from the date of IPO," it said.
I think people prefers new IPO ICON offshore , afterall ICON is a GLC - Government Link Company @ EQUINAS ( government agenda ) , so money will be no problem - oso - preferred by PETRONAS. so brighter @ shining future with ICON offshore , easily to get government projects , especially from cash cow@ rich PETRONAS !!
ICON Offshore Bhd is coming to the market at a price-to-earnings multiple (PE) of 18 to 19 times its estimated 2014 earnings (FY14) – a premium over the sector average of 13 times.
Its peers such as Perdana Petroleum Bhd and Alam Maritim Resources Bhd are currently trading at 13 times their forecast earnings this year, and between 11 and 12 times their 2015 earnings, according to Bloomberg data.
On a historical basis, Icon Offshore will be listed at a steep 24 times earnings, given its indicative initial public offering (IPO) price of RM1.85 and earnings per share of 7.61 sen last year.
Its FY15 valuations are more reasonable at 13 to 15 times earnings.
At these levels, the offshore support vessel (OSV) owner-operator is commanding valuations that are closer to the large cap, integrated players like Bumi Armada Bhd and SapuraKencana Petroleum Bhd.
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sure HOT this IPO , much better than dull Grocery Store 7-Eleven IPO !