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VELOSI ANNOUNCES INTENTION TO LI - 19 Sep 2006
14 August 2006
VELOSI ANNOUNCES INTENTION TO LIST ON AIM
Velosi Limited (?Velosi? or the ?Company?) is the holding company of the Velosi Group (?Velosi Group? or the ?Group?), which provides quality assurance and quality control services to a number of leading national and multinational oil and gas companies, including BP, Shell, ExxonMobil, and Chevron. The Company is today announcing its intention to list on AIM and to raise approximately £10 million through an institutional placing of new ordinary shares (\"Placing\") in relation to its proposed admission to AIM (\"Admission\").
Strand Partners Limited (?Strand Partners?) is the Nominated Adviser and Charles Stanley Securities (?Charles Stanley?) is the Broker to the Company.
Admission is expected to take place and trading is expected to commence on 21 August 2006 and the Company?s symbol will be VELO.L.
The net proceeds of the Placing will be used to repay existing loans, provide financing for the Group?s acquisitions and planned expansion into new regions and provide working capital for the Velosi Group.
On Admission it is anticipated that the Company will be capitalised at approximately £34 million at the Placing price.
Business Overview
? The Velosi Group, founded in 1982, provides quality assurance and quality control services to a number of the leading national and multinational oil and gas companies, including BP, Shell, ExxonMobil and Chevron.
? The oil and gas, petrochemical and power industries are highly capital intensive. Owners and operators of producing and manufacturing assets (for example oil rigs, sub-sea pipelines, refineries and power and petrochemical plants) rely heavily on such assets and therefore invest heavily in quality assurance and quality control in their development and maintenance in order to minimise interruptions to production, environmental and/or asset damage and danger to the health and safety of personnel.
? The Group?s services can be divided into four main categories:
- Project Verification
- Quality Enhancement Services
- Certification Services
- Engineering Support Services
? The Velosi Group operates globally through four principal offices in the USA, the UK, Malaysia and the UAE and has operational or representative offices in a further 27 countries worldwide. The majority of the operating and regional offices are strategically located in close proximity to significant oil and gas production areas and/or equipment manufacturing industrial centres.
? The Group has been successful in securing a number of long-term contracts with many of the leading national and multinational corporations in the oil and gas sector.
? For the five months to 31 May 2006 the Group recorded turnover of US$22.9 million and profit before tax of US$3.2 million compared to turnover of US$9.6 million and profit before tax of US$1.0 million for the same period in 2005, in each case extracted from the unaudited management accounts of the Group.
Strategy for Growth
The Velosi Group intends to continue establishing itself to be a leading provider of quality assurance and quality control to its customers worldwide. Specifically, the Directors intend to develop the business by:
? Entering new geographic regions in particular new and emerging markets in Central Asia, Russia and Africa: The Directors believe the burgeoning activity in the oil and gas sectors in each of these regions represents a significant opportunity for the Group
? Increasing market share: The Directors believe the Group is able to compete favourably on price, technical competence and range of services and therefore expect to increase the Group?s market share in existing regions
? Adding new services: Primarily through acquisitions and joint ventures with companies offering complementary services to those of the Group
The Directors believe that Admission is an important development for the Group and will:
? Raise the profile of the Group in markets in which it operates and in potential markets
? Provide the Company with the increased ability to use Ordinary Shares as full or part consideration for potential acquisitions
? Aid the raising, where necessary, of additional finance for the future development of the business
? Enable the Group to recruit, motivate, reward and retain directors and employees through the use of performance-linked share options
Commenting on the IPO, Dr. Nabil Abdul Jalil, Chief Executive Officer, said:
?Velosi is a well-established business with a strong financial track record and is ideally positioned to continue to grow rapidly. Investment and activity levels in the oil and gas sector remain high reflecting the relatively high oil price and the need to seek and exploit new oil reserves. Consequently, demand for our services globally should also continue to be high and, with the new capital raised, Velosi will be in an even better position to take advantage of this.?
Media Enquiries:
Velosi Dr. Nabil Abdul Jalil
Joe Vincent 020 7930 0777
Strand Partners James Harris
Warren Pearce 020 7409 3494
Charles Stanley Mark Taylor
Freddy Crossley 020 7739 8200
Cardew Group Tim Robertson
Eden Mendel 020 7930 0777
DISCLAIMER
This announcement does not constitute or form any part of an offer or invitation to sell or issue, or any solicitation of an offer to purchase or subscribe for, any shares in Velosi, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract thereof. The contents of this announcement have not been approved by an authorised person and recipients of this announcement who intend to purchase or subscribe for shares in Velosi following its publication of an admission document in final form are reminded that any such purchase or subscription may only be made on the basis of the information contained in such document which may be different from the information contained in this announcement. Accordingly, no reliance may be placed for any purpose whatsoever on the information contained in this announcement or on its completeness. No representation or warranty, express or implied, is given by Velosi, its directors, Strand Partners, Charles Stanley, Cardew Group or any other professional adviser as to the accuracy or completeness of the information and opinions contained in this announcement and no liability is accepted for the same.
Appendix
Board of Directors
John Anthony Hogan, aged 53 (Non-executive Chairman)
John Hogan is a geologist who has spent over 30 years in the oil and gas industry, including extensive experience at board level. He spent his early career with Shell, Britoil plc and Elf Acquitane. He joined LASMO plc in 1981 and ran their US operation for five years, was Managing Director of LASMO North Sea between 1989 and 1993, and was then on the main board of LASMO plc as Executive Director and Chief Operating Officer between 1993 and 1999. Since then John has worked at board level in a number of companies in the energy sector. In addition to his role at Velosi, he is currently Chief Executive of Argos Resources Ltd, a private exploration company, Chairman of the Acteon Group Limited, an oilfield services company, and a non executive director of Noreco AS, a Norwegian exploration company.
Dr Nabil Abdul Jalil, aged 54 (Chief Executive Officer)
Dr Nabil is the Group?s Chief Executive Officer and is responsible for its overall management, particularly in setting the Group?s business direction and strategies. He obtained a B.Sc (Hons) in Applied Physics from City University, London in 1976, an M.Sc in Physical Methods of Analysis in 1977 as well as a PhD in Nuclear Physics in 1980 from the University of Aston, Birmingham. Dr Nabil commenced his career as a Research Officer with the Malaysian Tun Ismail Atomic Research Centre prior to founding the Group in 1982, and has been the driving force in the growth and expansion of the Group.
Joseph Thomas Vincent, aged 60 (Group Commercial Director)
Joseph Vincent is responsible for business development. Joseph began his career in 1971 with Atkins Inspection Services Limited, where he was responsible for the development of the business both in the UK and overseas. In 1983, he was appointed a Director. He subsequently joined Oilfield Inspection Services plc, a company listed on the London Stock Exchange, as Overseas Managing Director from 1988 to 1993 and Group Marketing Director from 1992 to 1993. Joseph joined the Group in September 1994.
Ooi Soon Teik, (known as Dan), aged 38 (Group Finance Director)
Dan Ooi qualified as a Certified Public Accountant (Australia) at Price Waterhouse, which was followed by several years of corporate finance experience in private and public companies in Malaysia. Dan formed his own consultancy firm in 2001, providing advisory services in the areas of corporate finance to small and medium sized companies, including acting as a consultant to the Group from November 2004. He was appointed Group Finance Director in March 2006.
Marcus John Gregory Stanton, aged 52 (Non-executive Director)
Marcus Stanton is a Chartered Accountant with extensive experience in investment banking. He was a director of Robert Fleming & Co., from 1993 to 2001, where he was Chief Operating Officer of Capital Markets and Head of Structured Finance. Prior to this he was a director at Hill Samuel & Co. Marcus is a non-executive director of Cardinal Resources plc, Windsor plc and Lok?nStore plc. |
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For Media enquiries, please contact:
Bunny Nabil - Corporate Communications Manager
29-3, The Boulevard Mid Valley City, Lingkaran Syed Putra
Kuala Lumpur
Malaysia
T: +603 603 2284 8178
F: +603 2284 8179
Bunny-nabil@velosi.com |
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