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Lombard
Media
In the News: 2007Song of a Mermaid Asia Private Equity Review Mermaid Maritime has rewarded its long-term investors When Mermaid Maritime Public Co. ('Mermaid Maritime'), an engineering and drilling services company for the oil and gas industry, was listed on Singapore Stock Exchange ('SGX') on 16th October, it was an occasion of great joy for the US-based Lombard Investments, Inc.. Mermaid Maritime offered 140 million. Its public offering was well received. On its first day of trading, Mermaid Maritime's share price closed at S$1.80, a 15.4% increase to its offer price. Mermaid Maritime's debut marked a milestone in its 3 year partnership with private equity investors that commenced in 2004. Lombard Investments began its private equity investment relationship with Mermaid Maritime in June 2004. In the ensuing 10 months that ended April 2005, the private equity firm, through its Thailand Equity Fund, had committed and aggregate US$12.3 million to Mermaid Maritime. The deployment was made via three rounds of capital injections. At Mermaid Maritime's last series of fund raising before it went public, the Singapore-based UOB Venture Management Pte Ltd. ('UOBVM') decided to join Lombard Investments and inject US$6.4 million into the marine services operator. The investment was made through the ASEAN China Fund. After a holding period of 18 months. UOBVM sold its interest in the Thai-based company, reporting an estimated 88% internal rate of return. Lombard Investments continued its journey with Mermaid Maritime. At the latter's initial public offering, the private equity investment ifrm did not dispose of its holdings and is currently retaining a 15.1% interest in the company . On the books, Lombard Investments has made handsome returns on the investment. Based on Mermaid Maritime's offer price of S$1.56, Lombard Investments' current equity holdings in the company have a value of around US$86.57 million, representing an exhilarating internal rate of return of 99%. Established in 1983, the 24-year old Mermaid Maritime has not only accomplished a significant chapter in its corporate development when it became a quoted stock on SGX, it is one of the most impressivenotes in investors' deal record books. Significantly, Mermaid Maritime is the latest a affirmation of the investment climate in Southeast Asia, which has fully recovered from the 1997-1998 Asian Financial Crisis, and where profitable returns are on longer a myth to private equity investors. MNTech, a South Korea-based manufacturer of optical film, became a quoted stock on KOSDAQ on 1st October. It offered 1.5 million shares for 37,000 won (US$40.49) each, and raised 55 billion won. Backed by Walden International, MNTech also became the 1,000th quoted company on KOSDAQ. On its first day of trading, MNTech's shares closed at 32,300 won. (South Korea)
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2010 Lombard |