CAPITOL NUSANTARA PLANS TO PURCHASE $6M VESSEL BY JULY WITH IPO PROCEEDS
Posted on February 06, 2014 on 07:01:37 WIB
Capitol Nusantara Indonesia, a local shipping company, is planning to buy a new anchor handling tug supply vessel, known as an AHTS, by July this year to help with its operational activities, a commissioner of the company said. The company will finance the vessel with proceeds from its recent initial public offering. The company based in Samarinda, East Kalimantan, raised Rp 41.7 billion ($3.46 million) from the sale of 208.36 million shares, or 25 percent of its enlarged capital, early this month. Proceeds from the IPO, after deductions for emission costs, will be used to buy the AHTS, which costs around $6 million and is expected to arrive in June, Capitol executive Yanuar C. Wijaya said. He was speaking at the firm’s trading debut on the Indonesia Stock Exchange (IDX) in Jakarta on Thursday. Shares of Capitol rose 20 percent toRp 239 at the close on the IDX on Thursday from its IPO price of Rp 200. The company is also seeking bank loans to finance the boat purchase. “For the boat, we will also get bank loans. We usually borrow from Bank Mandiri,” Yanuar said, without providing further details. Capital was reported to have been talking to potential AHTS sellers last year, including its affiliate ASL Shipyard Indonesia, for a 5,000-6,000 horsepower vessel to accommodate up to 30 people. Capitol has future plans to purchase supporting boats for offshore operations, marketing optimization and expansion to Malaysia, Brunei, the Philippines and East Timor. “For the expansion, that is what we are targeting for the future, but that’s not going to happen this year because we are still focusing on the domestic market,” Yanuar told reporters. The company will join hands with Hafar Daya Samudera, a company offering marine services, to install an undersea pipeline. It has underwater pipe installation projects in Papua and the north of Central Java. Revenue at Capitol is estimated to have reached a total of $7.8 million in the first half, the company’s corporate secretary Riduwan Kosasih said. Capitol runs a fiscal year from July to June. Riduwan said although the company posted a loss of $478,000 in operational income during the first half, it remained optimistic coming into the second half. Capitol, which currently owns a total of 60 vessels, is a joint venture between Cipta Nusantara Abadi, which is in turn controlled by Singapore-listed ASL.