Indonesian coal tugs and barges operator PT Mitrabahtera Segara Sejati Tbk (MBSS) today launches an initial public offering (IPO) of 215 million new shares or 12.3% of enlarged capital paid in. The company expects to list its shares at Indonesia Stock Exchange (IDX) on April 4 2011.
Referring to the IPO prospectus published today, Mitrabahtera has mandated two lead underwriters, PT OSK Nusadana Securities Indonesia and PT Mandiri Sekuritas for the IPO.
MBSS will use all the IPO proceed to underpin some financing of 20-30 additional new tug boats and barges or crane in 2011 and 2012. The operator also intends to use bank loan facility to support the financing.
MBSS plans to buy tug boats with capacity of 1,200 horse power (HP)-2,800 HP, barges with capacity of 270 feet-365 feet, and floating crane with capacity of 20,000 tons-45,000 tons a day.
The company provides one stop fully integrated solutions to the logistical needs of the Indonesian coal industries ranging from shore based barge loading facility to the offshore loading of the ocean going vessels.
The services range from ship management, ship registration harbor assist tugs, LCT, floating cranes, floating terminals, manning services, marine consultancy, agency services, transshipment activities, domestic and international trade & marketing.
Ingrid Ade Sundari Prasatya and Patricia Pratiwi Suwati Prasatya are both controlling share holders in MBSS with 15.4% shareholding each. PT Patin Resources also controls 56.2% stake in MBSS.
MBSS enrolled Indonesian logistics markets as a family company led by Francesca Hadinata and Bing Prasatya in 1993. As of September 30 2010, MBSS owns 51 tug boats, 47 barges, and 4 floating cranes. The company is underway to construct a new floating crane scheduled to be commercially operated in February this year. Patricia Prasatya, with support of Jon Vassella, is in charge of the day-to-day running of the company and business development.
On June 14 2010, MBSS entered into an investment agreement with Accion Capital Management Pte Ltd (ACM) for convertible loan with principal amount of US$5 million in which ACM acts as investor agent and Accion Asia Growth Fund as newly investor.
Under the agreement, when MBSS has listed shares at IDX, each investor must convert the loan into new shares of MBSS with condition the market capitalization is above US$300 million or Rp2.66 trillion (assuming US$1 equals Rp8,865).
If MBSS's market capitalization is below US$300 million, investors will not obliged to convert the loan into new shares until July 8 2013. With US$300 million capitalization, MBSS's per share equals Rp1,485. By selling 12.5% new shares via IPO, MBSS is targeting about Rp327 billion cash.
Patin Resources, Ingrid Prasatya, and Patricia Prasatya, acting as sellers, entered into an option agreement with PT Indika Energy Tbk (INDY), controlled by Indonesian billionaire Agus Lasmono Sudwikatmono, son of Indonesian tycoon Sudwikatmono who just passed away, and Wiwoho Basuki Tjokronegoro, on November 26 2010.
Pursuant to the agreement, Indika and its affiliates have option to acquire 51% shareholding in MBSS from the sellers after the IPO. The option agreement is valid until 180 days since MBSS lists shares at IDX scheduled on April 4 2011.
Post IPO, exercising of convertible loan and option agreements, Ingrid Prasatya and Patricia Prasatya will be no longer shareholder in MBSS. Patin Resources owns 34.5%, public shareholders holds 10.8%, employees and managements with 1.2%, convertible loan holders with 2.4%, and Indika controls 51%.
MBSS posted Rp552.97 billion revenue as of September last year and Rp685.99 billion for the year of 2009. Gross profit reached Rp224.04 billion and the year of 2009 saw Rp309.57 billion.
Operating profit was Rp178.37 billion in September last year (operating margin at 32.34%) and the year of 2009 was Rp238.05 billion (operating margin at 34.70%). Net profit stood at Rp157.82 billion and Rp243.75 billion in 2009.
Something sounds interesting here. Check the dividend policy at the page 2 bottom in the prospectus. MBSS plans to distribute cash dividend of maximum at 50% of its net profit after tax starting in 2011 and onwards. In 2009, MBSS recorded Rp243.75 billion net profit. Assuming half of the profit will be distributed as cash dividend to shareholders, each shareholder may obtain Rp68.08 per share. Is it attractive?
Disclosure: No position at the stock mentioned above.
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