SINGAPORE (Sept 17): When Kim Heng Offshore & Marine Holdings raised $36.4 million in an early 2014 IPO, little did it realise there would be a severe industry downturn six months later. Crude oil prices plunged and oil exploration activities ceased. Production companies dished out fewer contracts and many offshore service providers were hit — including Kim Heng O&M.

Inevitably, the newly listed company’s earnings and revenue fell drastically and the stock plummeted to an all-time low of 6.2 cents in 2016, down 75% from its IPO price of 25 cents.

Amid the downturn, Kim Heng O&M husbanded its IPO proceeds. When distressed vessels were auctioned off by banks, the company was able to swoop in to snap up some of these assets at a significant discount. Most notably, it paid US$9.6 million ($13.2 million) for three 10,800bhp anchor handling tug and supply (AHTS) vessels. These three vessels were previously valued at US$33 million each. The vessels — Swiber Anne-Christine, Swiber Else-Marie and Swiber Mary-Ann — were formerly owned by troubled Swiber Holdings. They have since been renamed as Bridgewater 130, Bridgewater 131 and Bridgewater 132, respectively.

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