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LNG shipper GTS Internasional seeks $30 million from IPO
The lion’s share of the funds, 64 percent, would be used to develop a floating storage regasification unit (FSRU) -- a ship that reconverts LNG into gas for distribution.
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L
iquefied natural gas (LNG) shipping company PT GTS Internasional plans to raise up to Rp 429 billion (US$29.7 million) from its initial public offering (IPO) in September, mainly to build new infrastructure, amid an expected increase in Indonesia’s national gas output.
The company said on Thursday that the lion’s share of the funds, 64 percent, would be loaned to subsidiary PT Anoa Sulawesi Regas (ANOA) to develop a floating storage regasification unit (FSRU) -- a ship that reconverts LNG into gas for distribution.
GTS Internasional president director Kemal Imam Santoso said the FSRU, slated to start operations in the fourth quarter this year, would help supply gas to power plants in North Sulawesi.
“Our business growth will be accelerated through service expansion and potential business acquisitions to increase our revenue. This will also increase our market share significantly,” he said during an online press briefing.
The company claims to have a 34.62 percent market share of the Indonesian FSRU industry and a 52.41 percent market share of the Indonesian LNG carrier (LNGC) industry, according to the company’s prospectus.
The company’s expansion plans come as the Upstream Oil and Gas Special Regulatory Task Force (SKKMigas) works toward doubling gas production over this decade to 12,300 million cubic feet per day by 2030.
Read also: Indonesia aims to double gas production by 2030 with major projects in pipeline
The company plans to use 20 percent of the IPO funds for working capital, such as to establish an online shipping monitoring system, and the remaining 16 percent as a capital injection for ANOA, according to the prospectus.
PT GTS Internasional would be traded on the Indonesia Stock Exchange under the ticker GTSI. The company would release 2.86 billion shares, or equal to 17.6 percent of the enlarged capital. The shares would be sold at around Rp 100 to Rp 150 per share.
The company’s other shareholders would be a workers’ cooperative that owns a 0.03 percent stake and PT Hateka Trans Internasional that owns an 82.4 percent stake. The latter company is a subsidiary of publicly listed shipper PT Humpuss Intermoda Transportasi.
PT GTS Internasional booked a $1.59 million loss in the January-May period, undoing the $4.31 million profit from the same period last year, due to higher operational costs. Its revenue was also down 35 percent to $7.94 million over the same time frame.
Kemal also said the company planned to build an LNG supply chain ecosystem by acquiring affiliated companies.
“These acquisitions will be the basis for our decision to add more vessels,” he added.
