Bhagwan Marine is gearing up to launch its $80 million initial public offering by the end of July, which would value the Kannikoski family's stake at about $70 million.
Bhagwan Marine is gearing up to launch its $80 million initial public offering by the end of July, which would value the Kannikoski family's stake at about $70 million.
The marine services company has recently lodged its prospectus to the Australian Securities and Investments Commission.
Detailed in its prospectus, the Loui Kannikoski-founded company will raise $80 million through an IPO of nearly 127 million new shares issued at 63 cents each.
The Kannikoski family holds 74.9 per cent of the business and if completed, the IPO would dilute the family’s shareholding to 40.4 per cent, which roughly equates to $70.3 million.
Mr Kannikoski and entities associated with him would apply for 476,200 shares under the IPO, according to the prospectus.
The Kannikoski family will also be paid $12.7 million to cover their debt over a loan to Bhagwan Marine in 2014.
The prospectus said the company entered a shareholder loan with Loui Kannikoski for the plantation acquisition.
Bhagwan chair Anthony Wooles would be valued at $14.7 million, with his percentage of shares diluted to 8.5 per cent, if the IPO is completed.
Mr Wooles also intends to apply for 521,944 shares under the offer, the prospectus said.
Bhagwan has scheduled to launch the IPO on July 30.
The company appointed former investment banker Andrew Wackett and Imdex director Tracey Horton to its board last month.
According to the prospectus, Mr Wackett plans to apply for 160,000 shares under the offer while Ms Horton intends to apply for 30,000 shares.
Bhagwan's flagged IPO also comes amid its rival MMA Offshore, based in Henderson, mulling a $1.07 billion takeover deal.
Singaporean firm Seraya Partners, through its offshore vessel subsidiary Cyan, recently upped its bid to acquire MMA Offshore from $2.60 to $2.70 per MMA share.
