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hipping company Sillo Maritime Perdana plans to expand its sea transportation service into the natural gas sector, funded by proceeds from next month’s initial public offering (IPO).

The company, which focuses on transporting oil products, expects to raise fresh funds worth between Rp 70 billion (US$5.12 million) and Rp 80 billion from the share sale, slated for June 8 to 10.

It plans on releasing 600 million shares to the public, equal to 23.08 percent of its enlarged shares, through the IPO. Each share will carry price tag of Rp 100.

At present, local firms Maxima Prima Sejahtera and Karya Sinergy Gemilang have equal ownership of Sillo Maritime. Their shares will be diluted to 38.46 percent worth each after the IPO.

Sillo Maritime has appointed Lautandhana Securindo and UOB Kay Hian Securities as underwriters for the IPO.

Sillo Maritime president director Edi Yosfi said on Wednesday that 90 percent of the IPO funds would be used to finance the acquisition of a 50.8 percent stake in shipping company PT Suasa Benua Sukses (SBS).

SBS currently focuses on the upstream oil and gas sector. Both firms signed a share purchase agreement worth Rp 63.06 billion on March 10.

Edi added that the remaining 10 percent of the IPO proceeds would be used for working capital.

Lautandhana Securindo president director Wientoro Prasetyo said that the acquisition of SBS was a good strategy for Sillo Maritime.

With the SBS aboard, Sillo Maritime will be able to diversify its operations in the gas sector to compensate for slow oil business due to weak global oil prices.

“We tend to see oil and gas as a single unit, but actually they are two commodities with different prospects and potential,” Wientoro said.

Sillo Maritime finance director Theresia Herjati said the company would be able to increase its assets and revenue by 50 percent each after the acquisition of SBS.

It reported assets amounting to $41.9 million and equities worth $30.67 million in 2015. The assets were lower than the $48 million reported a year earlier.

In terms of top line, the company saw its revenue fall 23 percent on an annual basis to $15.6 million and its comprehensive profit slide 24.7 percent annually to $4.4 million in 2015.

It hopes to reverse the situation this year and reap $20 million in revenue from new and ongoing contracts.

So far, Sillo Maritime has managed to keep all of its ships in operation amid difficult times, said director Sumanto Hartanto.

He claimed that business remained steady because all the company’s contracts were signed with oil companies that focused on production, as opposed to those focusing on exploration.

The latter, Sumanto said, were the ones heavily affected by the falling oil prices.

Data from the company shows that its client list includes China National Offshore Oil Corporation SES Ltd., Total E&P Indonesie, Chevron Indonesia and Conoco Phillips Indonesia Inc. Ltd.