Gulf Marine Services PLC said Wednesday that it is raising 20 million pounds ($28.3 million) through a share placing and open offer at a sharp discount, which will be used to reduce the company's debt.
The Abu Dhabi-headquartered marine-services group said it is proposing a placing of 370.7 million new shares and an open offer to subscribe for a further 665.9 million new shares, both at 3 pence a share. The issue price represents a 51.6% discount to Tuesday's closing price of 6.2 pence, Gulf Marine Services said.
The company said the placing is subject to a right of recall to satisfy applications by shareholders for the open offer.
Gulf Marine Services said Seafox International Ltd., Mazrui Investments LLC and a third existing institutional investor--which hold, in aggregate, 44.33% of the existing Gulf Marine Service shares currently in issue--have committed to take up their entitlements under the open offer for 295.2 million shares in aggregate, the company said.
The company said the fundraising will allow it to cut debt and that, with reduced debt and improved terms, it will be well placed to benefit from better market conditions in oil and gas in the Middle East and renewables in Europe.
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