not vested
Carimin fair value at RM1.35, says Maybank Research
KUALA LUMPUR: Maybank Investment Bank Research has an indicative fair value of RM1.35 for Carimin Petroleum, which is 25 sen above its IPO price of RM1.10.
The research house said on Wednesday the FV was based on CY15 earnings per share (EPS) of 11.3 sen. It had pegged it to a fair CY15 price-to-earnings ratio (PER) of 12 times.
Maybank Research said this was consistent with its valuations for mid-sized oil & gas service providers under coverage and having imputed a discount for Carimin considering its smaller fleet size and market capitalisation.
“This represents an upside potential of 23%. Positive earnings surprise would come from stronger-than-anticipated contribution from its manpower supply unit and chartering services,” it said.
Carimin will be listed on the Main Market on Nov 10, 2014. Its IPO application closes on Wednesday.
Under the listing exercise, it is issuing 60.7 million new shares at RM1.10 each to raise RM66.8mil. There is also an offer for sale of 5.9 million shares.
Maybank Research said Carimin is licenced by Petroliam Nasional Bhd (Petronas) to provide onshore and offshore hook up and commissioning (HUC) services. It also provides manpower supply and equipment rental services.
In November 2013, Carimin secured a RM899mil five-year contract from Petronas Carigali to provide offshore HUC as well as topside major maintenance for the production platforms offshore Peninsular Malaysia.
“We project a 26% two-year (FY6/14-16) EPSCAGR, underpinned by the five-year RM899mil Peninsular Malaysia HUC project and also margins expansion.
Hook up and commissioning - key earnings driver. Carimin owns an anchor handling tug supply vessel (AHTS), Carimin Airis, while its 14% investment in Synergy Kenyalang Offshore Sdn Bhd (SK Offshore) also owns an accommodation workboat, the SK Deep Sea, which is chartered for Carimin's Peninsular Malaysia HUC contract.
Source: The Star