Homegrown Mooring Solutions Provider Mooreast Holdings IPOs on SGX Catalist

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Homegrown Mooring Solutions Provider, Mooreast Holdings Ltd., to Raise Total Gross Proceeds of S$8.5M from SGX Catalist IPO

  • Offering of 800,000 Offer Shares at S$0.22 each and Placement of 38,050,000 Placement Shares at S$0.22 each
  • Mooreast has received pre-IPO funding from Singapore-based global investor EDBI
  • IPO Proceeds to fund Mooreast’s growth strategies to become a leading player in offshore renewables and sustainability 

17 November 2021, Singapore

Total moorings solutions specialist Mooreast Holdings Ltd. (“Mooreast” or the “Company”) today registered its Offer Document in conjunction with its Initial Public Offering (“IPO”) and listing on the Catalist Board of the  ingapore Exchange Securities Trading Limited (“SGX”).

 

The IPO entails a public offer of 800,000 Offer Shares at S$0.22 each and a placement of 38,050,000 Placement Shares at S$0.22 each, payable in full on application. Total gross proceeds of approximately S$8.5 million will be raised from the IPO.

 

The Application List will close on 22 November 2021 at 12:00 noon and the Company’s shares are expected to commence trading on a ready basis on 24 November 2021 at 9:00 am (“Listing Date”).

 

W Capital Markets Pte. Ltd. is the Sponsor and Issue Manager and Placement Agent, while UOB Kay Hian Private Limited is the Underwriter.

 

Mr Wayne Lee, Chairman and CEO of W Capital Markets Pte. Ltd. said, “We are very excited about Mooreast’s long-term prospects in the offshore renewable energy sector and glad that Mooreast will be W Capital Markets Pte. Ltd.’s first IPO on the SGX-ST”.

 

 

Mooreast disclosed in the Offer Document that it has received funding from Singapore-based global investor EDBI. The investment will support Mooreast’s on-going business transformation and its increased focus on  ffshore renewables and sustainability.

 


About Mooreast


Mooreast is a total mooring solutions specialist serving mainly the offshore oil & gas (“O&G”), marine and offshore renewable energy industries, with operations primarily in Singapore, and through its wholly-owned subsidiary, Mooreast Europe, a European sales office in Rotterdam, the Netherlands. 

 

Mooreast’s solutions include the design, engineering, fabrication, supply, installation and commissioning of mooring systems. Mooreast is applying its experience and expertise to floating renewable energy projects, in particular floating offshore wind farms. It has successfully participated in developmental and prototype projects for floating offshore wind turbines in Japan and Europe.



Financial Highlights

Mooreast has consistently reported strong financial performance even during the downturn in the O&G industry in 2020 due to the COVID-19 pandemic. For the past three financial years ended 31 December (“FY”) 2018, 2019 and 2020, it recorded revenues of approximately S$15.0 million, S$16.3 million and S$19.7 million, respectively.

 

For FY2020, Mooreast recorded a net profit after tax of approximately S$3.8 million. For the six months ended 30 June 2021 (“6M2021”), Mooreast recorded revenues of approximately S$7.2 million and net profits of approximately S$393,000, notwithstanding the impact of the pandemic.



Business Strategies

To expand its renewable energy division Mooreast intends to step up marketing and business development efforts in key markets such as Europe and Asia, increase manpower to meet anticipated demand, and deploy a research & development team to source for new products and technology.

 

Having acquired 51 Shipyard Road in July 2021, Mooreast plans to upgrade the facility to undertake fabrication of floating and related steel structures used in the floating offshore wind farm industry. Mooreast will invest in additional equipment and machinery to upgrade the facility which has a 200-metre waterfront.

 

Mooreast will also expand and diversify its products and service offerings and capabilities through own investments or potential mergers and acquisitions, joint ventures and/or strategic collaboration.

 

Mr Sim Koon Lam, founder, Executive Director, CEO and Deputy Chairman of Mooreast, said, “We are leveraging our deep domain knowledge and strong track record as a leading mooring solutions specialist in the O&G and marine sector, and diversifying our skillset to serve the offshore renewable energy sector. Mooreast is tapping the capital markets to fund these growth strategies. We are excited to embark on a major new chapter of growth.”


“Amid rising concerns of climate change, demand for offshore renewable energy solutions will increase. Renewable energy players will need a mooring specialist to install floating platforms, which will be a vital component in harnessing wind, solar and tidal energy offshore.” 



Outlook

Following the sharp downturn in 2020 due to the COVID-19 pandemic, the O&G industry is steadily recovering due to the sustained increase in oil demand. Mooreast expects the recovery of the O&G sector along with increasing demand for renewable energy to propel its growth in the coming years.

 

OPEC has estimated the demand for renewable energy to grow by 7.0% per annum, significantly faster
than other sources of energy[1]. The International Renewable Energy Agency has forecasted that the offshore wind capacity will represent 17% of total global installed wind capacity of 6,044 GW by 2050[2]. Floating wind farms are expected to comprise 5% to 15% of global offshore wind installed capacity by 2050[3].

 

The demand for offshore wind in Asia is expected to see an upsurge over the next few years. The UK’s offshore wind market is expected to remain robust up until 2030, driven by relatively stable framework for new project developments and the UK Government’s commitment to achieve net-zero carbon emissions[4].

 

Demand for solar energy in Southeast Asia is also growing at a compounded annual rate of 63.0% from 1,988 MW in 2015 to 22,845 MW in 2020, with the floating solar PV market potential in Southeast Asia estimated to be at least 24 GW[5]



Use of Proceeds

Mooreast intends to use its net proceeds due from the IPO as follows:

 

  1. Approximately S$4.0 million to develop the facilities and capacity of 51 Shipyard Road and scale up operations to cater for increased workload expected from floating wind energy prospects
  2. Approximately S$1.0 million to explore M&A opportunities
  3. Approximately S$0.5 million to develop and grow its renewable energy division
  4. Approximately S$1.2 million for general corporate and working capital purposes
  5. Approximately S$1.8 million for listing-related costs.

 

Copies of the Offer Document, the application forms relating to the IPO and envelopes may be obtained on request, subject to availability, during office hours from:

 

W Capital Markets Pte. Ltd.

65 Chulia Street

#43-01 OCBC Centre

Singapore 049513

and

UOB Kay Hian Private Limited

8 Anthony Road, #01-01

Singapore 229957.

 

An electronic copy of the Offer Document is also available on SGX’s website at http://www.sgx.com.

 

***End of Press Release***

This press release has been prepared by the Company and its contents have been reviewed by the Company’s sponsor, W Capital Markets Pte. Ltd. (the “Sponsor”). This press release has not been examined or approved by the Singapore Exchange Securities Trading Limited (the “SGX-ST”) and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Mr Chia Beng Kwan, Registered Professional, W Capital Markets Pte. Ltd., at 65 Chulia Street, #43-01 OCBC Centre, Singapore 049513, Telephone (65) 65133541

 

Issued for and on behalf of Mooreast Holdings Ltd. by WeR1 Consultants Pte Ltd.