Wintermar to generate fresh funds by issuing new shares

By Romel S. Gurky

PT Wintermar Offshore Marine Tbk, an IDX-listed offshore supporting vessel provider, said is annual general meeting of shareholders (AGMS) has approved the management's plan to issue new shares on a non pre-emptive basis, to maximum of 423 million shares aiming at generating fresh funds. 

The new shares will represent 9.075 percent of the company’s shares after issuance.

The proceeds of the share issuance will be used for working capital, debt repayment and business development.

The company said up to 400 million shares may be issued anytime up until May 20, 2021, and up to 23 million shares may be issued anytime up until May 20, 2024.

The minimum price of the issuance will be determined according to prevailing Indonesia Stocks Exchange Regulations, which stipulates a minimum price of 90 percent of the average closing price based on of 25 trading days prior to the shares being listed on the Indonesia Stock Exchange.

As at end of March 2019, the company’s contracts on hand amounted to US$75.8 million.

At the AGMS and Public Expose of the company on Tuesday (21/05), President Director of Wintermar Sugiman Layanto said that the business condition is improving for the offshore support vessel industry.

As oil prices have strengthened and global expenditure on upstream oil and gas exploration and production is picking up, Wintermar expects a stronger year in 2020, Layanto said.

In Indonesia the activity has been slower to recover than outside of Indonesia due to lower charter rates and lower budgets. Through an emphasis on quality service, Wintermar has succeeded in winning contracts in foreign markets, and expanded to Africa last year.

Although the utilization was lower than expected in the first quarter of 2019 due to delays in project commencements and the presidential elections in Indonesia in April 2019, there is an improvement expected for the second half of 2019 as business activity is improving.

Editing by Roffie Kurniawan