<article>Singapore-based oil and gas services firm <a href="http://www.nauticawt.com" target="_blank">NauticAWT</a> has launched an initial public offering (IPO) to raise net proceeds of S$2.8 million ($2.06 million). NauticAWT will offer 28 million shares at S$0.20 apiece</article>

Singapore-based oil and gas services firm <a href="http://www.nauticawt.com" target="_blank">NauticAWT</a> has launched an initial public offering (IPO) to raise net proceeds of S$2.8 million ($2.06 million). NauticAWT will offer 28 million shares at S$0.20 apiece
The funds raised will be used to finance investments in capital equipment and further expand its business. NauticAWT currently provides engineering services and contracting solutions to the oil and gas industry, operating out of 11 offices across the following regions: Southeast Asia, Australasia, Middle East, Latin America and India.
The company will sell 1 million shares via public offer, while the remaining 27 million shares will be offered via a placement. The public offer will start from 9 am on Wednesday, 15 July 2015, and close at 12.00 pm on Tuesday, 21 July 2015. The listing and trading of the shares on the Singapore Exchange&#8217;s <a href="http://www.sgx.com/wps/portal/sgxweb/home/listings/overview/!ut/p/a1/04_Sj9CPykssy0xPLMnMz0vMAfGjzOKNHB1NPAycDSz9TcwtDTzNA309PQ3NDbwdzYEKIoEKDHAARwNC-sP1o1CVGBi6GRh4OoX5BFlYuBlaGJqgK_APMzA38Az1dwoODgszDHQ1hirA44aC3AiDTE9HRQC0wNwu/dl5/d5/L2dBISEvZ0FBIS9nQSEh/" target="_blank">Catalist</a> board is expected to commence at 9.00 am on Jul 23.
<h3>IPO background</h3>
This IPO comes after a <a href="http://www.awtinternational.com/awt-international-merges-with-nauticgroup/" target="_blank">merger in March</a><a href="http://www.awtinternational.com/awt-international-merges-with-nauticgroup/" target="_blank"> 2015</a> of AWT International and NauticGroup to form NauticAWT Energy Solutions. The merger was a complementary deal, aggregating technical skill sets and extensive international portfolios, consolidating their assets and strengthening their position amidst that market shocks that came from the reduction in oil prices, <a href="http://www.telegraph.co.uk/finance/newsbysector/energy/11372058/Saudi-Arabia-increases-oil-output-to-crush-US-shale-frackers.html" target="_blank">intended by Saudi Arabia to hit high-cost oil suppliers like shale oil producers</a>.
While some speculate that this could be to kill of alternative competition and <a href="http://oilprice.com/Energy/Oil-Prices/Is-Saudi-Arabia-Setting-The-World-Up-For-Major-Oil-Price-Spike.html" target="_blank">establish the grounds for an oil price spike</a> further down the line, another reason could be that <a href="http://business.financialpost.com/news/energy/saudi-arabia-was-worried-about-a-danger-much-bigger-than-shale-when-it-blindsided-oil-markets" target="_blank">flagging long-term demand</a>, caused by concerns over carbon externalities and climate change, will see a shift towards renewable energy sources and a switch to alternative fuels (e.g.natural gas), especially in the Asia Pacific (APAC) and African emerging markets.
A decline in demand for an energy commodity like oil, the foundation of Saudi Arabian wealth, is a strategic issue for the Middle Eastern kingdom, as well as oil majors worldwide.  Especially in lieu of the possibility that <a href="http://www.miningweekly.com/article/opec-believed-to-overstate-oil-reserves-by-70-reserves-depleted-sooner-2012-10-04" target="_blank">OPEC oil reserves may be overstated</a> and can set the ground for <a href="http://www.desertsun.com/story/beschloss/2014/02/06/are-saudi-oil-reserves-vastly-overstated-causing-future-shortages/5265059/" target="_blank">future shortages</a>.
With this in mind, the merger that formed NauticAWT and the current IPO of a company that acts as a solutions provider across the entire life cycle of an oil and gas asset, as well as their specialisation of mature field enhancement and abandonment, is a key point to note.
With energy demands in Southeast Asia and the Indo-Pacific rim set to grow, NauticAWT is preparing to position itself for the long term growth that the energy sector and the oil &amp; gas segment are going to see as the emerging markets of the Indo-Pacific and Asia Pacific regions mature.
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NauticAWT's IPO on the Singapore Exchange Catalist board is expected to raise S$2.8 million in funds for the oil & gas services firm.

NauticAWT IPO expected to raise S$2.8m

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NauticAWT IPO expected to raise S$2.8m

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