Singapore's Ezra Holdings has raised nearly US$100 million in a private placement aimed at boosting its balance sheet in anticipation of increased demand for its subsea and offshore support services. Now, it says, it is "poised to seize opportunities."
Ezra successfully placed 110 million new shares at S$1.10 each, representing a discount of approximately 8.4 percent to the volume weighted average price of S$1.2007 on the last full market trading day up to the launch of the issue. Gross proceeds from the issue were S$121 million.
Ezra's Managing Director, Lionel Lee said: "Our subsea services arm, EMAS AMC, has rapidly grown its order book to US$1 billion ahead of our 12-18 month target timeframe and the order momentum is likely to continue. The industry is now facing a capacity issue as many subsea contractors have full schedules for the next 2-3 years. The funds we have just raised will strengthen our position to seize the many opportunities we see in the offshore oil and gas sector. Our global tender book currently stands at approximately US$4 billion and we are confident of winning a significant portion of these projects."
March 11, 2012