Gaylin Holdings is up 2.9% to $0.36 from its IPO price of $0.35 each where 110 million new shares were sold. The offshore O&G rigging and lifting service provider may also benefit from buoyant sector sentiment as the E&P pace remains healthy.
Also offering a fillip, Gaylin has committed to an at least 30% dividend payout ratio for FY13-14; based on the fiscal-FY12 post-offer EPS of 3.2 cents from its prospectus, a fiscal-FY12 dividend would have been around at least 0.96 cents, or an around 2.7% payout.
The offer appears fairly priced at 10.9x FY12 P/E, based on the fiscal-FY12 post-offer EPS; a recent Maybank-Kim Eng report indicated Singapore-listed small-to-mid cap O&M plays were trading around an average 10.3x current P/E and 13.5x historical.
The $35.4 million estimated net proceeds from the IPO are earmarked for expanding into Asian and other markets by setting up new facilities, acquisitions, JVs or strategic collaborations and to expand its Malaysian operations and for general working capital.
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