STX OSV Holdings, the offshore vessel building arm of STX Group, plans to raise $257.26 million  in an initial public offering in Singapore as rising energy use spurs demand for its oil-rig support vessels.

The shipyard will sell 180 million new and 145.646 million existing shares, according to a document lodged with the Monetary Authority of Singapore today. The shares will start trading on a ‘ready’ basis on Nov. 12.

 

The Alesund, Norway-based company plans to use the sale proceeds to pay for a second yard in Brazil as well as to increase capacity in Norway, Romania and Vietnam.

 

The shipbuilder won new orders worth US$863 million ($1.12 billion) in the first six months and it had a US$2.4 billion backlog, according to its prospectus. The company is part of STX Europe ASA, which also makes cruise ships. South Korea-based STX Group completed the acquisition of STX Europe, formerly known as Aker Yards ASA, last year.

 

In total, $6.1 billion has been raised in 26 Singapore IPOs so far this year, according to data compiled by Bloomberg.

 

The offshore vessel maker will be the second STX unit to list in Singapore, following STX Pan Ocean Co. South Korea’s biggest bulk-ship operator started trading in the city state in July 2005.