Egypt's Maridive and Oil Services, one of the largest marine and oil support companies in the Middle East, said Wednesday it plans to raise up to $850 million in an initial public offering of its shares to fund regional and global expansion plans.
The price for the offering of up to 74,222,264 shares will range between $3.25 and $3.74 per ordinary share, the company said in a statement.
The offer will consist of a public offering of shares in Egypt and a private placement of shares to Egyptian and international institutional investors, including to qualified institutional buyers in the U.S., according to the statement.
Maridive said it will begin its roadshow for the private placement today, with pricing expected to occur April 22.
Retail investors will be offered a 5% discount rate to the private placement price and trading is expected to begin on the Cairo and Alexandria Stock Exchanges May 5.
EFG Hermes is the sole global coordinator and bookrunner to the public offering.
The private placement will consist of up to 64,814,417 shares, including an overallotment option of 9,407,848 shares, to be sold by the existing shareholders of the company, Maridive said.
The local Eleish, Zeid and Nadim families, which collectively hold around 82% of company shares, will use a portion of the proceeds from the sale of shares in the private placement to subscribe at the private placement price to 28,962,990 new shares to be issued by the company by way of a capital increase and closed subscription, Maridive said.
The company expects to have a free float of around 30% once the closed subscription and the private placement have been completed, according to the statement.
Maridive's retail offering will comprise up to 9,407,847 shares with further details to be disclosed April 18, the company said.
Maridive offers offshore construction services such as pipe-laying, platform installation as well as engineering, procurement and construction for underwater oil and gas projects.
The company also offers offshore support vessels, chartering vessels needed to tow offshore rigs, and supplies rigs and production platforms with materials required.
Maridive owns and operates 43 vessels and 11 barges, making it the largest company in terms of fleet size in Egypt and the Middle East.
The company recently contracted 15 new vessels and two barges to be delivered by 2011 as a part of its expansion plans.
Around 86% of Maridive's revenue in 2007 was generated from operations outside of Egypt as the company won contracts in the Gulf region, the Caspian Sea, Mexico, the Far East and northern and western African countries.