Singapore?s Pearl Energy launches IPO

Singapore's Pearl Energy Ltd, a company that's only three years old, Monday launched an initial public offering to raise S$77.6 million, providing investors with a play on the region's oil and gas exploration business, the Dow Jones Newswires reported on Monday from Singapore.

The Pearl IPO comprises 110.9 million new shares at 70 Singapore cents each, of which 5.55 million shares will be offered to the public and 105.4 million shares will be sold by way of placement to institutions, staff and business associates.

The IPO shares represent about 25 percent of Pearl's enlarged share capital, and are being offered at a multiple of 2.5 times estimated operating profit before changes in working capital of $56.8 million for 2005, the company said.

The company said it plans to use the IPO proceeds to conduct geological, geophysical and drilling activities, repay borrowings, and finance acquisition of new contract areas. The remainder will be used as working capital.

CLSA Singapore is the lead underwriter, placement agent and sole bookrunner for the Pearl IPO, with DBS Bank acting as sub-underwriter. The offer closes April 18 and its shares will begin trading on the Singapore Exchange on April 20.

Pearl was set up in 2002 with seed capital from PT Austindo Nusantara Jaya. It currently has interests in nine exploration and production, or E&P, contracts covering Indonesia (Tungkal PSC, Jambi JOB-EOR, Sebuku PSC, Salawati Basin PSC, Salawati Island PSC and West Salawati PSC), Thailand and the Philippines. Of the nine areas, Tungkal, Salawati Basin and Salawati Island PSCs contain fields that are already producing oil. (*)