Singapore oil exploration device firm to list TDRs


CNA

TAIPEI, Taiwan — Technics Oil & Gas Ltd., a Singapore-based provider of oil and gas exploration equipment, will list its Taiwan depositary receipts (TDRs) on the local over-the-counter (OTC) market Feb. 25, underwriter Polaris Securities said yesterday. The listing will make Technics the first foreign company to issue TDRs on the OTC market in Taiwan, the underwriter said.

The Singapore firm secured approval from Taiwan’s Financial Supervisory Commission for the TDR listing in early January.

According to Technics’ prospectus, it is planning to issue 80 million TDRs, each of which will represent 0.5 common shares of the company, which has been listed on the main board of the Singapore Exchange since 2008.

The company, which will kick off public subscription next week for the listing, said it expects to raise about NT$800 million and will use part of the proceeds to pay some of the debts shouldered by its subsidiary, Technics Offshore Engineering Pte. Ltd, to cut interest payments.

The subsidiary accounted for about 75 percent of Technics’ total sales in the year to September 2010.

Technics, which runs production bases in Singapore and Indonesia, designs and develops process modules and equipment used for the production and storage of oil and gas exploration and production.

The company said it serves clients from Singapore, Indonesia, Malaysia, Thailand, Vietnam, China, the United States, Dubai, Norway and Bangladesh.

Earlier this year, Technics said, it secured construction and service contracts for oil exploration vessels from Oman and Russia worth about NT$1.15 billion, adding that the deals are expected to make a significant contribution to its earnings for 2011.