SINGAPORE – 18
February 2003 –
Sinwa KS Limited (“Sinwa
KS”), a home-grown regional
marine supply and logistics
company, today launched its
initial public offering
(IPO) of 25 million shares
at $0.23 each in conjunction
with its listing on the
Singapore Exchange
Securities Trading Limited
Dealing and Automated
Quotation System
(SGX-SESDAQ).
Of these 25 million shares,
7.5 million shares are
available for public
subscription; 13.5 million
shares for placement; and
4.0 million shares reserved
for employees and business
associates of the
Group.
The IPO, which represents
20% of Sinwa KS’ enlarged
share capital of 125 million
shares, is being offered at
a price earnings ratio of
10.85 times based on the
audited net earnings per
share for the financial year
ended 31 December 2001.
The IPO, which is managed by
HL Bank, opens on 18
February 2003 and closes at
noon on 26 February 2003.
Trading of Sinwa KS’ shares,
in board lots of 1,000
shares each, will commence
on a “when issued” basis on
28 February 2003.
According to Sinwa KS, out
of the net proceeds of
approximately $4.6 million,
$2.0 million will be used to
fund acquisitions and enter
into strategic alliances and
partnerships. Another $2.0
million will be used to
finance the enhancement of
the Group’s logistics
capabilities and
infrastructure, and the
remaining $0.6 million for
working capital.
With a history that dates
back to the 1960s, Sinwa KS,
a winner of EDB/Business
Time’s Enterprise 50 Awards
in 1998, is today an
established ISO
9001:2000-certified marine
supply and logistics company
servicing the oil and gas
industry and sea-going
vessels in Singapore, UAE,
the PRC and Timor Leste.
Sinwa KS’s core business is
supplying a wide range of
ships’ stores, provisions
and equipment to ships and
oil rigs, as well as
providing their operators
and owners with shipping
agency and related
services.
Since 1999, the Group has
also expanded its
capabilities to include the
supply, fabrication and
installation of thermal
insulation materials on gas
and chemical vessels. This,
together with its marine
supply management,
consultancy and contract
labour supply to oil rigs,
has helped the Group to
further diversify its
business and geographical
reach.
The Group’s acquisition of
KS Seafirst, a wholly-owned
subsidiary of
mainboard-listed KS Tech
Limited, in 2002, has
enabled the Group to access
and increase its reach in
the oil and gas industry.
Through KS Seafirst’s
representative office in
Timor Leste, Sinwa KS also
provides contract labour to
the oil and gas industry
there.
Sinwa KS has established a
strong, international
customer base comprising
ship owners, ship management
companies and oil rig
operators, with orders from
its repeat customers
accounting for about 90% of
Group revenue.
In 1999, the Group made
inroads into the UAE and in
2001, acquired a 49% stake
in Sinwa Dubai, which serves
the ports of Dubai,
Fujairah, Jebal Ali, Port
Rashid, Sharjah, Abu Dhabi
and Khorfakhan.
Sinwa KS has also
established, in 2002, a
network of appointed marine
supply and logistics
companies in three of the
PRC’s busiest ports – namely
Dalian, Shanghai and
Guangzhou – to which it
provides management and
technical consultancy
services, enabling these
companies to apply the SINWA
brand of service quality and
operational efficiency.
“At present, the PRC
government imposes certain
restrictions on direct
participation in the local
shipping industry. However,
we see opportunities when
the Chinese market opens up
in line with WTO practices,”
said Mr Mike Sim, Managing
Director of Sinwa KS.
“Through our network of
appointed marine supply and
logistics companies in
Dalian, Shanghai and
Guangzhou, we are
strategically poised to
establish a firm and early
presence in the PRC, and
will continue to market and
license the SINWA brand to
other marine supply and
logistics companies in other
major ports in the PRC,” he
said.
Growth
strategy -- Acquisitions and
alliances
While Sinwa KS focuses on
increasing its market share
of the marine supply and
logistics business in
Singapore through acquiring
similar companies and
related businesses, the
Group’s long-term objective
is to become a global
service provider with
presence in major ports
around the world, thereby
reducing the need for its
customers to appoint and
deal with a variety of
service providers with
diverse business practices.
Sinwa KS’ customers can
therefore benefit from a
consistent, seamless level
of service quality and
reliability in the ports
that Sinwa KS has
operational presence. To
achieve this, the Group will
explore business alliances
and acquisition
opportunities with foreign
marine supply and logistics
companies.
Growth
strategy – Strengthening the
SINWA brand
The SINWA brand name,
established in Singapore for
29 years, and in the UAE for
3 years, is an important
competitive advantage. As
such, the Group will
continue to promote and
market the SINWA brand name
by participating in regional
and international trade
events as it continues to
focus on improving its
service quality processes.
Growth
strategy – Broadening
customer base
Sinwa KS intends to expand
its customer base of ship
owners, ship management
companies and oil rig
operators to include
dredging and cable ship
operators, navy vessels and
cruise liners.
Financial
Highlights
For the full year ended 31
December 2001, Sinwa KS
achieved a proforma turnover
of $35.8 million and profit
after tax of $2.1
million.
In the first 7 months ended
31 July 2002, the Group
posted a proforma turnover
of $25.4 million and profit
after tax of $2.9 million.
