(Alliance News) - Gulf Marine Services PLC on Wednesday proposed a GBP11.1 million capital raise via a share placing as the support vessel operator looks to cut debt.
"The fundraise announced today represents a further stepping stone in the resetting of the GMS story," said Executive Chair Mansour Al Alami.
Gulf Marine is an Abu Dhabi-based provider of support vessels for THE offshore oil, gas and renewables industries.
Gulf Marine has set out to raise the GBP11.1 million in the placing through the issue of up to 370.7 million shares at 3 pence each. In addition to this, the company announced an open offer for 665.9 million shares at the same price, which would raise another GBP20.0 million if take up in full.
Shares in Gulf Marine were down 36% at 3.95 pence each in London on Wednesday morning following the announcement.
The issue price represents a discount of 52% to the closing middle market price of 6.2 pence per share on Tuesday. The new shares, when issued, will represent 66% of the enlarged issued share capital of the company.
"With reduced debt and much improved terms, the company will be well placed to benefit from the improving market cycle in oil & gas in the Middle East and renewables in Europe and the potential for increases in day rates as the market continues to tighten. This will build on the significant progress made to-date, which includes a much-reduced costs base, a strengthening of the order book and far better levels of vessel utilisation," Al Alami said.
Seafox International Ltd, Mazrui Investments LLC and a third unnamed institutional investor, who together hold 44% of the company's shares, have signed up for their entire entitlements under the open offer, 295.2 million shares in total worth GBP8.9 million.
Proceeds from the raise will be used to reduce the company's debt
The placing has been fully underwritten by Panmure Gordon UK Ltd.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Gulf Marine Services (GMS)