SINGAPORE, Oct 3 (Reuters) - Marine fuel supplier Chemoil Energy Ltd. has withdrawn its initial public offering due to weak investor demand on the back of lower oil prices, a source close to the deal said on Tuesday.
The share sale would have raised as much as US$374 million for the company and one of its existing shareholders.
"The deal has been pulled," a source told Reuters. "Look at what happened to oil prices."
The crude oil price fell towards $60 a barrel on Tuesday, extending Monday's steep decline, on forecasts of a further increase in fuel inventories in the United States. The oil price has fallen more than 20 percent since peaking at $78.40 in July.
Two fund managers familiar with the deal told Reuters on Monday that the firm had lowered its indicative price range to US$0.55-US$0.85, from US$0.65-US$0.85 previously, in the final hours before the deal was due to be priced.
JP Morgan, Morgan Stanley and UBS were lead managers for the share offering.
Chemoil said in its prospectus that it would sell a total of 439.49 million shares, or 30 percent of its enlarged share capital.
China Kangda: Just like its instant food, this is an instant stag.
Epure: Preferred pick among the three.
Chemoil: Bottomline tgt 46c & optimum tgt 99.5c, which gives a mean value of approx 73c. Opening debut, however, will still be backed by stabilising agents.
NRA has only a fair value of USD0.60. Do you think it will trade "underwater" on debut?
China Kangda: Just like its instant food, this is an instant stag.
Epure: Preferred pick among the three.
Chemoil: Bottomline tgt 46c & optimum tgt 99.5c, which gives a mean value of approx 73c. Opening debut, however, will still be backed by stabilising agents.
TikamBoy wrote: Learnt that the currency for this IPO is trading in USD, so will it be the same as SP Ausnet facing the foreign exchange risks as well?
Of cos. Stocks that are listed in a currency other than S$ will always be subjected to currency risks. But of cos, as with any risks, there are possibility that the exchange rate may goes in your favour. So you may get an added bonuse when you sell (if the S$ appreciates)
