SembMarine rights issue meets solid demand, with Temasek group set to make compliance offer

Singapore two-dollar bills

Sembcorp Marine said Friday it received applications for around 117.7 percent of the 18.83 billion rights shares offered as a move to raise around S$1.5 billion in a Temasek-backed offering.

Valid acceptances were made for 15.86 billion rights shares, or 84.2 percent of the offering, while excess applications came in for 6.31 billion rights shares, or 33.5 percent of the offering, SembMarine said in a filing to SGX. The offering was on the basis of three rights shares for every two existing shares at S$0.08 each.

“The completion of the tights issue is integral to the company’s strategy to recapitalise to address liquidity requirements and complete existing projects, as well as to support the company’s strategic business transition towards the high-growth renewable and clean energy
segment,” SembMarine said in the statement.

“The board of directors of the company is delighted that the rights shares have been fully subscribed with a majority of the shareholders subscribing for their entitlements and applying for excess rights shares,” the company added.

SembMarine has previously said the proceeds would be used for working capital and other general corporate purposes, including debt servicing, which would better position the group to competitively bid for new high-value, large-scale projects.

The new shares are expected to begin trading on SGX on 22 September, the company said.

Once the new shares are allotted, Temasek Holdings’ wholly owned subsidiary Startree and its concert parties will be obligated to make a compliance offer for the remaining shares they don’t already own, SembMarine said.

In an earlier statement, SembMarine said the Temasek concert parties’ offer would need to match the rights price, and that Temasek intended to maintain the company’s listing status.