IPO Sillo Maritime Perdana on the Indonesia Stock Exchange
Indonesian shipping company Sillo Maritime Perdana, which provides offshore support vessels, plans to conduct an initial public offering (IPO) on the Indonesia Stock Exchange (IDX). The company set the indicative price for its IPO in the range of IDR 117-140 a piece. By issuing 600 million new shares, or 23.08 percent of its enlarged share capital, Sillo Maritime Perdana targets to collect roughly IDR 77 billion (approx. USD $5.7 million) in funds from the IPO. Lautandhana Securindo and UOB Kay Hian Securities were appointed as underwriters for the IPO.
Edi Yosfi, General Director at Sillo Maritime Perdana, said 90 percent of funds collected through the IPO will be used for business expansion, mainly through the acquisition of other companies engaged in the shipping industry (for example the purchase of a 50.84 percent stake in cruise upstream oil & gas services firm Suasa Benua Sukses). The remaining 10 percent will be allocated to Sillo Maritime Perdana's working capital.
The book building process for the company's IPO is conducted between 25 and 30 May 2016, while the offering period is set for 8-10 June. Listing on the IDX is scheduled for 15 June 2016. Currently, shares of Sillo Maritime Perdana are owned by Maxima Prima Sejahtera (50 percent) and Karya Sinergy Gemilang (50 percent). After the IPO, stakes of Maxima Prima Sejahtera and Karya Sinergy Gemilang will have declined to 38.46 percent and 23.08 percent, respectively.
Wientoro Prasetyo, General Director of underwriter Lautandhana Securindo, is optimistic that investors are interested in Sillo Maritime Perdana's shares given the company's solid financial fundamentals, prudent management, and solid operational strength as it can rely on various long-term contracts in the oil and gas industry.
Theresia Herjati, Financial Director at Sillo Maritime Perdana, said the company targets to collect USD $20 million in revenue in full-year 2016, up 33 percent (y/y) from USD $15.6 million worth of revenue in 2015 supported by new contracts and existing ones as well as the acquisition of Suasa Benua Sukses (SBS). SBS currently owns three ships with long-term contracts. The largest ship being the LPG Floating Storage and Offloading (FSO) that has been operated since 2005 and holds a contract up to 2020.
Meanwhile, Sillo Maritime Perdana's net profit is projected to rise 50 percent (y/y) to USD $6.8 million in 2016. At the end of 2015, total assets stood at USD $41.96 million, while the company's equity reached USD $30.67 million.
Herjati added that the decline in oil and gas prices has not impacted too much on Sillo Maritime Perdana's financial performance as transportation of oil and gas has continued as usual. However, company data show that from 2014 to 2015 Sillo Maritime Perdana's revenues declined 23 percent (y/y).
Sillo Maritime Perdana, established in 1989, now owns eight ships (after the acquisition of SBS the
figure will rise to 11). The company states that it is one of the companies that benefit from Indonesia's cabotage system. Several years ago, the Indonesian government applied the cabotage principle for several types of offshore vessels, a move that boosts usage of Indonesia-flagged ships in the sector. Transportation Regulation No. 10/2014, signed in March 2014, eliminated offshore support vessels from the list of vessels foreign companies are allowed to operate.
Between May and June 2016 six Indonesian companies are expected to conduct an IPO on the Indonesia Stock Exchange. Besides Sillo Maritime Perdana these six companies comprise independent power producers Megapower Makmur and Cikarang Listrindo, property developer Graha Andrasentra Propertindo, health and beauty products retailer Duta Inti Daya, and financial institution Bank Ganesha. The IDX targets to welcome 35 new companies on the bourse in full-year 2016. However, so far this year only three companies have gone public on the IDX: Bank Artos Indonesia, Mitra Pemuda and Mahaka Radio Integra.