Sealink aims to raise RM141.7m

The shipbuilder and charterer wants to expand its fleet of 29 vessels to 40 vessels in the next three years

SHIPBUILDER and charterer Sealink International Bhd aims to raise as much as RM141.71 million from its listing on the main board, which will be used, among others, for the expansion of shipyards and fleets.

The company's initial public offering (IPO) comprises a public issue of 113.37 million new ordinary shares and an offer for sale of 15 million Sealink shares at RM1.25 per share.

Miri-based Sealink, founded in 1974 by managing director Yong Foh Choi, initially provided charter services to the navy, fishing, dredging, logging and mining industries.

The group now builds and operates a diverse fleet of offshore marine support vessels to serve the global oil and gas sector.

"We want to expand our fleet of 29 vessels to 40 vessels in the next three years. At least RM300 million is needed over the next three years for this expansion. We need larger landing craft of up to 72 metres and anchor handling tugs and supply vessels of up to 12,000 brake horsepower," chief executive officer and deputy managing director Yong Kiam Sam said yesterday.

Half of the vessels are earmarked for Sealink's own fleet, he said, while the other half are ordered by customers overseas.

Kiam Sam, who is Foh Choi's son, was speaking to reporters after Miri Member of Parliament Datuk Peter Chin Fah Kui officiated at Sealink's prospectus launch in Kuala Lumpur.

AmBank Group managing director Cheah Tek Kuang and AmInvestment Bank managing director Kok Tuck Cheong represented AmInvestment Bank Group as adviser, sole underwriter and sole placement agent for Sealink's IPO.

Kiam Sam said Sealink planned to invest between RM50 million and RM100 million over the next three years to upgrade its two shipyards in Miri. The Krokop shipyard measures 10,730 sqm while the shipyard in Kuala Baram is about 10 times bigger at 116,170 sqm.

"We intend to establish an office in Singapore soon and want to penetrate the global shipping market in Netherlands and Norway," he said.

Last year, 57 per cent of Sealink's RM45.87 million gross profits came from shipbuilding while the rest was from chartering its vessels to clients in the oil and gas sector.

Sealink forecasts that it can achieve RM58.45 million pre-tax profits on RM213.26 million revenue by year-end. - By Ooi Tee Ching