Borr Drilling提出美国IPO条款

Borr Drilling aims to raise $50 million in a U.S. IPO.The firm is a shallow-water offshore drilling service provider to the oil & gas industry.BORR has grown rapidly since inception but results have tapered in Q1 2019 and the IPO is pricey, so I\'ll be watching it from the sidelines.Borr Drilling (BORR) has filed to raise gross proceeds of $50 million from a U.S. IPO, according to anF-1/A registration statement.The firm operates as a global offshore shallow-water, or water with depths of up to 400 feet, drilling contractor for the oil & gas industry.BORR’s recent Q1 2019 period growth of only 6.6%, combined with a muted price outlook for oil markets providing downward pressure on pricing in the near-term and a pricey IPO valuation mean I'll be passing on the IPO.Hamilton, Bermuda-based Borr was founded in 2016 to provide offshore shallow-water drilling contracting services for the oil and gas industry, primarily in the North Sea, the Middle East, Mexico, West Africa, and Southeast Asia regions.Management says that since inception, the company has obtained 27 rigs, including 26 jack-up rigs and one semi-submersible rig, with an additional eight jack-up rigs scheduled for delivery by late 2020.The firm is headed by CEOSvend Anton Maier, who has been with the firm since its inception and was previously Senior Vice President for Africa and the Middle East at Seadrill, a deepwater oil & gas drilling company.Borr additionally supplies its exploration and production customers with related equipment and work personnel to conduct oil and gas drilling and workover operations.The firm contracts its jack-up rigs and employees on a day-rate basis to drill wells for customer companies, including integrated oil, state-owned national oil, and independent oil and gas companies.For the year ended 2018, top five customers of the company were subsidiaries of National Drilling Company [NDC], TAQA (TAQA), BW Energy (FRA:XY81), Spirit Energy (OTCPK:CPYYF) and Total (TOT), while for Q1 2019, top five customers of BORR were NDC, TAQA, Perenco, Total and Tulip (BCS).Management disclosed that its total contract backlog stood at $383.2 million as of June 30, 2019, and $377.5 million as of December 31, 2018.According to a2018 market research reportby Stratistics MRC, the global offshore drilling market was valued at $79.5 billion in 2017 and is projected to reach $152.5 billion by 2026, growing at a CAGR of 7.5% between 2018 and 2026.The main factors driving market growth are the growing demand for oil and gas, coupled with huge investments in new offshore reserves as drilling economics improve vis a vis onshore options.The Asia-Pacific region is projected to grow at the fastest rate due to the recent discoveries of oil and gas in the offshore basins in East Asia, Australia region, and China Sea as well as the high demand for material China and IndiaMajor competitors that conduct offshore drilling operations or provide related services include:Source:SentieoBORR’s recent financial results can be summarized as follows:Below are relevant financial metrics derived from the firm’s registration statement:Source: Company registration statementAs of March 31, 2019, the company had $59 million in cash and $1.6 billion in total liabilities. (Unaudited, interim)Free cash flow during the twelve months ended March 31, 2019, was a negative ($69.9 million).BORR intends to raise $50.0 million in gross proceeds from an IPO of five million shares of its common stock at a reference price of $9.98 per share, not including customary underwriter options.Assuming a successful IPO, the company’s enterprise value at IPO would approximate $2.5 billion.Per the firm’s latest filing, it plans to use the net proceeds from the IPO as follows:Management’s presentation of the company roadshow is not available.Listed underwriters of the IPO are Goldman Sachs, DNB Markets, BTIG, Citigroup, Danske Markets, and Evercore ISI.BORR is still effectively in ramp-up stage, although the firm is currently listed on the Norwegian Stock Exchange.The firm’s financials show only one full year of operations at scale, that of 2018, and management clearly has the ability to grow its results quickly from a standing startThe market opportunity for offshore drilling appears to be significant and expected to grow at a significant rate.Technological advancements, such as the ability to drill in multiple directions from a single well-head, have enabled offshore projects to become more cost-effective when compared to onshore production.Also, trends in the Middle East, which has historically had relatively fewer wells per basin, indicate a change as countries there become more aggressive in their geographic diversification.Additionally, MENA countries are increasingly interested in developing their natural gas resources, as they present a potentially cleaner source of fuel, both for internal usage and external sale.As to valuation, Borr is asking investors to pay a significant premium when compared to another offshore driller, Transocean.Given the extent of that premium, the firm’s recent Q1 2019 period growth of only 6.6%, and a muted price outlook for oil markets providing downward pressure on pricing in the near-term, I'll be watching this IPO from the sidelines.Expected IPO Pricing Date: July 30, 2019.I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.