Oilfield Workforce Group (ASX: OFW) is the newest oil and gas services entrant to the Australian Stock Exchange, with the company yesterday hitting the stock exchange boards.
Oilfield CDI's traded in a narrow band, and did change hands at $0.51 - which is above the prospectus entry price of $0.50.
In the IPO the company offered 12 million shares to raise $6 million and the offer of up to 10 million Sale Shares by the Vendor - bringing the total potential level of applications accepted to 22 million - or $11 million.
Oilfield already has a portfolio of blue chip clients, including McDermott Australia, Petrofac International (UAE) and Wood Group Production Facilities (Asia Pacific), for projects located in various countries including Australia, Indonesia, Iraq, Singapore, Malaysia and Nigeria.
This client base is generally focused on the oil and gas industry that seek contract labour to staff projects, and more specifically for projects such as constructing oil rigs, production vessels and installing pipelines.
Repeat business makes up the majority of Oilfield's revenue, with the company’s top five clients accounting for 90% of revenue in financial year 2011.
Oilfield's conducted the IPO to tap additional capital which the company says will allow it to pursue further growth and development opportunities.
These opportunities have been mapped out as organic growth in revenue from existing clients, new clients, along with the potential of acquisitions.
The company is incorporated in Singapore.
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