Maridive & oil services s.a.e. announces indicative price range for initial public offering
Up to 74,222,264 shares in the form of Ordinary Shares
Price range of US$ 3.25 to US$ 3.74 per Ordinary Share
Maridive & Oil Services S.A.E. (“MOS” or the “Company”), one of the largest marine and oil support services companies in the Middle East, today announces the indicative price range for the initial public offering of its ordinary shares (“Shares”) on the Cairo and Alexandria Stock Exchange (“CASE”), at US$ 3.25 to US$ 3.74 per Share. The announced indicative price range of US$ 3.25 to US$ 3.74 implies a pre money market capitalization of between US$ 740 million and US$ 850 million.
The Offer will consist of a public offering of shares in Egypt and a private placement of shares to Egyptian and international institutional investors, including to Qualified Institutional Buyers in the United States under Rule 144A.
MOS will commence its institutional roadshow in relation to the Private Placement on 16 April 2008 and expects pricing to occur on or around 22 April 2008. Unconditional trading on the CASE will commence on or around 5 May 2008.
EFG Hermes has been appointed Sole Global Coordinator and Bookrunner to the MOS Initial Public Offering.
The Private Placement
• The Private Placement comprises up to 64,814,417 Shares (including an overallotment option of 9,407,848 shares) to be offered to institutional investors internationally.
• All of the Shares in the Private Placement will be sold by existing shareholders of the Company. However, the Eleish, Zeid and Nadim Families, collectively the holders of around 82% of the Company's shares prior to the Private Placement, will use a portion of the proceeds from the sale of Shares in the Private Placement to subscribe at the Private Placement price to 28,962,990 new shares to be issued by the Company by way of a capital increase and closed subscription (the “Closed Subscription”). Following the completion of the Private Placement (assuming the overallotment option is fully exercised) and the Closed Subscription, the Company expects to have a freefloat of approximately 30%.
• The Company intends to use the net proceeds from the Closed Subscription to fund its ambitious expansion plan in the region and globally.
The Retail Offering
The Retail Offering comprises up to 9,407,847 Shares to be offered in the form of Shares to the public in Egypt at a [5%] discount to the Private Placement Price. Details of the Retail Offering will be disclosed in the Public Subscription Notice expected to be published on or about 18 April 2008.
About the Company
• With a history spanning 31 years, MOS is one of the leading and oldest companies in the MENA region to provide offshore marine and oil support services. The Group’s operations are divided into two main segments:
Offshore Construction Services (OCS) such as pipe-laying, platform installation as well as engineering, procurement and construction for underwater oil and gas projects.
The other segment is Offshore Support Vessels (OSV) whereby the Group charters vessels needed to tow offshore rigs and supplies rigs and production platforms with all materials required and ensure its safety through fire-fighting and anti-pollution systems which are installed on its vessels.
• As of March 2008 MOS owns and operates 43 vessels and 11 barges, making it the largest company in Egypt and the Middle East and one of the largest in the World in this field in terms of fleet size. The Company has recently embarked on an aggressive expansion plan, contracting for 15 new vessels and 2 barges to be sporadically delivered by 2011.
• MOS was able to expand its global footprint by winning contracts in the Gulf Area, Caspian Sea, Mexico, Northern and Western African countries in addition to the Far East. The Company’s global business model is evident in its diversified revenue base with approximately 86% of 2007 revenues being generated from outside Egypt.
• The Company was able to grow its revenues and net income by a CAGR of 38% and 106% respectively over the period spanning 2005 and 2007. For the fiscal year ended December 31, 2007, MOS had consolidated revenues, EBITDA and net Income of approximately US$ 264 million, US$ 109 million and US$ 80 million respectively.
Comment
Commenting on today’s announcement, Captain Eissa Eleish, Chairman of the Company said:
“This is a tremendously exciting time in the 31 year history of MOS. The offering of shares to investors in Egypt and internationally comes during a period where the Company has embarked on an ambitious expansion plan with 15 new vessels and two barges expected to be delivered by 2012. Maridive has expanded its business model well beyond Egypt by rendering its services all over the globe in local, regional and international markets. This IPO is going to play a significant role in the development of our business in years to come and will help fund expansion plans, making it essential that all aspects of the IPO are seamlessly managed”
