TUGBOAT operator Harbor Star Shipping Services Inc. has put off its planned initial public offering (IPO) this month due to volatility in the financial markets, the company informed the Philippine Stock Exchange (PSE).
The company, which only recently gained regulatory approval to undertake an initial public offering (IPO), wrote the PSE saying it may reset the share sale for September this year.
Harbor Star had earlier scheduled its IPO for July 22-26, followed by a listing of its shares on August 2.
“We believe that current market conditions are less than ideal to undertake and launch the offering,” Harbor Star said, citing consultations with issue manager and lead underwriter Abacus Capital & Investment Corp.
“We believe that current market conditions are less than ideal to undertake and launch the offering…Tentatively, we are looking at a new offer period within September 2013.”
Harbor Star is targeting P593.83 million from the sale of 181.60 million common shares, representing 30% of the company’s issued and outstanding capital stock. It will offer the shares at a maximum price of P3.27 per share.
The company said proceeds from the fundraising will be used to buy tugboats for domestic and overseas expansion and refleeting, finance the acquisition of landing craft tank barges and anchor-handling tugs, as well as to repay debt.
Each year, Harbor Star services about 5,000 vessels calling on various ports nationwide. Its services include towage, ship salvage, oil and chemical spill response, firefighting, underwater repairs, pipe-laying, underwater photography and video, and other maritime services.
Photo from www.harborstar.com.ph