Norway’s DOF Group plans to launch an initial public offering (IPO) in Oslo following the bankruptcy of its parent in February.
The shipowner collapsed under the weight of its debt in dire offshore vessel markets as shareholders were wiped out after rejecting a $2.25bn equity swap.
The assets were spun down into the new company that hopes to list in the second quarter amid a much-improved rate environment.
The Austevoll-based company said shares are to be offered in a private placement and public sale to investors in Norway and a private placement to institutional investors internationally.
The idea is to broaden the shareholder base, and DOF could issue stock constituting up to 10% of the company to its board of directors.
Bondholders own 55.55% of the company and secured lenders the rest. Banks involved include DNB, ABN Amro, BNP Paribas, Deutsche Bank, Danske Bank and SpareBank.
Chief executive Mons Aase said: “With our high-end fleet of vessels, strong team, track record and truly global presence, the DOF Group is very well positioned to take part in a strong market for offshore and subsea services going forward.”
“We are happy to put behind us the restructuring, leaving the group with a solid foundation for our operations and a basis to continue deleveraging and delivering long-term value creation to a wider group of stakeholders,” he added.
At the end of March, the group had a global workforce numbering 4,037 and a fleet of 55 vessels, including nine under management or chartered in.
For the first quarter, the company logged Ebitda of NOK 1bn ($90m) and revenue of NOK 3bn.
Stable financial footing
Chairman Svein Harald Oygard said: “After the restructuring, the DOF Group has established a stable financial platform with medium-duration debt, modest interest rates and a fully invested and employed fleet.”
“This provides a basis for increased equity value through fast deleveraging of the group’s debt, thus yielding benefit to the shareholders,” he added.
Ebitda guidance for 2023 is between NOK 4.2bn and NOK 4.7bn.
The midpoint of this range would allow a debt reduction of NOK 2bn per year.
The group now has NOK 15.4bn of net debt at “attractive” terms, with maturities in 2026.
The company expects to be well-positioned for potential additional refinancing by the end of 2025.
Tightening market
DOF said the ageing global fleet and few newbuildings imply a tightening market for subsea vessels.
The group also sees untapped potential in the offshore floating wind market, with high expected activity requiring significant new vessel capacity.
The modern high-end fleet is 100% active and operational, it added.
The contract backlog stands at NOK 22.1bn.
There was speculation the fleet could be sold following the takeover, but the IPO will now allow other investors in.
Billionaire Kristian Siem gained a nearly 2% holding in DOF through his bond ownership. He controls rival Siem Offshore.
DOF’s biggest shareholder was shipping tycoon Helge Mogster with 31.6%, but he, along with all other investors, lost everything in the bankruptcy.
