TAS Offshore IPO to raise RM69mil

Saturday, August 1st, 2009

KUCHING: Export-oriented shipbuilder TAS Offshore Bhd expects to raise RM69.3mil from its initial public offering in conjunction with its proposed listing on the Bursa Malaysia main board.

Deputy managing director Simon Lau said the company would use the proceeds to expand its existing shipbuilding and ship-repair operations in Sungai Bidut, Sibu.

“The shipyard will be upgraded to improve the infrastructure and operation efficiency. Our plan is also to increase production capabilities,’’ he added at the launch of the company’s prospectus by Sarawak Deputy Chief Minister Tan Sri Dr George Chan Hong Nam here yesterday.

TAS Offshore is offering for sale 77 million new ordinary shares of 50 sen at 90 sen a piece. It is scheduled to be listed on Aug 28.

Lau said the company would acquire machinery and equipment, like gantry cranes.

He said the existing shipyard could build an average 23 vessels a year and was now running at full capacity.

“Nearly 90% of our business is driven by exports, with our main customers from United Arab Emirates, Bahrain, Indonesia and Singapore,’’ he added.

TAS Offshore has in hand 28 ongoing contracts that will keep it busy until 2011. The company specialises in the construction of 23m-60m tugboats, anchor handling tug vessels and anchor handling tug supply vessels. It also builds ferries, workboats and landing craft.

Lau told reporters later the company had the expertise to build chemical tankers but did not have the facilities to do so now.

He said the company planned to diversify its business by embarking on ‘’build, own and sell ships’’ or ‘’build, own and charter ships.’’

However, he said it was still seeking partners for the plan.

Dr Chan, also state Industrial Development Minister, said TAS Offshore had become a regional player as it had the capability to build quality vessels that met international standards.

TAS Offshore posted a net profit of about RM16mil on turnover of RM121mil for the financial year ended May 31, 2008. For the first 10 months of the current financial year, it recorded RM15mil net profit on revenue of RM110mil.

Source: The Star