Soechi Line to raise Rp 2t via IPO

Shipping company Soechi Lines plans to launch an initial public offering (IPO) next month, hoping to raise around Rp 2 trillion in proceeds to finance expansion program.

Soechi Lines said in a statement that it planned to sell 2.57 billion of new shares (30% of enlarged capital) via an IPO on November 24-26.

Soechi Lines President Director Go Darmadi said that the shares would be priced at around Rp 600 to Rp 800, targeting proceeds of Rp 1.54 trillion to Rp 2.06 trillion.

Go said that the tanker company planned to use half of the IPO funds or next year?s capital expenditure (capex) to buy new vessels for its fleet. The company has allocated $92 million to buy five to seven new vessels next year.

He added that 25 percent of proceeds from the IPO would be used to repay some of the company?s debts while the remainder would be used for working capital. As of the first half of the year, the company generated $54.8 million in revenue, up by 18.35 percent year-on-year.

Soechi Lines? fleet comprises 33 vessels including oil tankers, gas carriers, and floating, production, and storage vessels. (*)