Aban Offshore Concludes Private Placement

Over in India, Aban Offshore has concluded its qualified institutional placement (QIP) comprises 5,697,135 new shares and raised Rs 675.50 crore (USD 150 million). The offering, managed by Citigroup Global Markets India, was eventually priced at Rs 1224.30. This represents a discount of a mere Rs 11.7 or 1% discount to last Friday’s closing price of Rs 1236. The private placement offer which opened on November 13 and closed on November 17 was well received and oversubscribed. For the existing shareholders, the private placement will result in an immediate equity dilution of nearly 13%. Continue Reading

Pipavav Shipyard

This week, we are impressed to see another shipyard finding success in the IPO market. This makes India’s Pipavav Shipyard the third successful shipbuilder to raise equity following Taiwan’s China Shipbuilding Corporation and Malaysia’s TAS Offshore since the beginning of this year.

Pipavav Shipyard will soon be listed on the Bombay Stock Exchange and National Stock Exchange upon the completion of its book building. The private shipyard has offered its shares at a price band of Rs 55 – 60 a piece and plans to raise between Rs 4.7 billion (USD 98 million) and Rs 510 billion (USD 106 million). This amount is significantly lesser than the USD 200 million it had previously planned when the shipyard registered its IPO during the first quarter of 2008. Out of the 85.45 million shares on offer, 2.6 million shares have been set aside for the employees. We have provided a summary of the transaction in the Guts of the Deal table that follows. JM Financial Consultants, Citigroup Global Markets India, Enam Securities and SBI Capital Markets are the appointed bookrunners for this IPO. Continue Reading