sources
SINGAPORE) The Singapore unit of Indian oil services firm Aban Offshore plans to list on the Singapore Exchange and may raise around US$400 million next year, two sources said yesterday. ‘It will be between US$350-$400 million and on the SGX,’ a source close to the deal said. A second source said the initial public offering will likely be launched in the first half of 2008 and could raise as much as US$500 million. Banking sources said Merrill Lynch and UBS have been mandated as lead managers.
Aban Singapore Pte Ltd earlier this year sold US$150 million of convertible bonds to four investors in a private placement. The bonds, due to mature in 2014, were sold to finance the purchase of shares in Norwegian offshore oil services firm Sinvest ASA, bankers said in February. The bondholders had the option to convert bonds into shares if the company is listed.
Sinvest delisted from the Oslo exchange on March 29. Merrill Lynch was also the lead manager for the bond deal. Aban Singapore and Sinvest both have offshore drilling rigs under construction at yards owned by Keppel Corp and SembCorp Marine.
Aban Offshore provides oil field services for offshore exploration and the production of hydrocarbons. It is part of the Indian conglomerate Aban Group, whose interests range from wind energy and conventional power generation to information technology and hotels.
Singapore, which is home to the world’s biggest bunkering port, is also Asia’s top physical oil trading centre and a major oil refining hub. This has made the city-state an increasingly popular capital market for Asian oil services firms. On Monday, Thailand’s Mermaid Maritime Public Co filed a prospectus to list on the Singapore Exchange to raise funds to boost its oil rigs business.
