CBL International Ltd announced the pricing of its initial public offering (IPO) of 3.33 million ordinary shares at US$4 per share for the total offering size of approximately US$13.3 million (RM58.87 million).
The shares began trading on March 23, 2023, US Eastern time, on the Nasdaq Capital Market under the symbol “BANL”. The offering is expected to close on March 24, 2023, subject to customary closing conditions.
CBL, together with its wholly owned subsidiaries, is an established marine fuel logistic company currently focusing on the Asia-Pacific region, providing one-stop solutions for vessel refuelling.
Their operations are based in Malaysia, Hong Kong and Singapore, but nearly all of their revenues were generated from China and Hong Kong.
The company has granted the underwriters a 45-day option to purchase up to an aggregate of 498,750 additional shares to cover over-allotments at the IPO price, less underwriting discounts.
“If the underwriters exercise their option to purchase the additional shares in full, the total proceeds from the offering are expected to be approximately US$15.3 million,” it said.
The company intends to use the net proceeds from the offering for: i) enlarging the number of local suppliers to enhance its competitiveness as well as to increase the service options available in the Singapore and South Korean markets; ii) further increasing the company’s business market shares in existing markets; iii) cash collateral to conduct trade financing activities with financial institutions, thus creating transaction records for further acquisition of bank financing to facilitate the company’s business growth; iv) procuring and developing a centralised management information system in order to enhance the company’s daily management control and treasury management; and v) other working capital and general corporate purposes.
Pacific Century Securities LLC is acting as the lead book running manager of this offering. Loeb & Loeb LLP is acting as the counsel to the company, and The Crone Law Group is acting as the counsel to Pacific Century Securities LLC.
