Bhagwan Marine has been beefing up its board ahead of a $100 million share market float that will likely go to investors as early as this week.
Tracey Horton and Andrew Wackett were quietly appointed directors of the WA marine services company in recent weeks, adding corporate governance and financial expertise as Bhagwan prepares for life on the ASX trading boards.
Ms Horton, a former chair of Navitas, is one of WA’s most experienced company directors, with her current portfolio comprising non-executive listed gigs with mining technology company Imdex, pathways education company IDP and property giant GPT.
Bhagwan is the first non-executive director role for Mr Wackett, a former investment banker with Macquarie who has been chief financial officer of modular building and caravan accessories group, Fleetwood, for the past seven years.
The duo have joined Bhagwan chair Anthony Wooles and founder Loui Kannikoski on the board.
Mr Kannikosi and wife Kerren hired Perth brokers Euroz Hartley three months ago to ready their business for an initial public offer, with the raising later targeted for the end of June.
Having undertaken a well-received roadshow in February to sound out interest, it is understood that Euroz Hartleys will likely market shares in the new public company to institutional and sophisticated investors by the end of the week.
Retail investors would get their chance after the company’s prospectus is registered.
The float would be WA’s biggest since employment and disability services company APM joined the market in late-2021 and capitalise Bhagwan at up to $250m.
Going into the IPO, the Kannikoskis owned 73 per cent of Bhagwan, which has built a fleet of 150 vessels, a workforce of 650 and a national network of offices and support facilities over nearly 25 years, servicing the oil and gas, defence, marine logistics and towage sectors.
Mr Wooles had 15 per cent of the company, with the balance held by a handful of small investors.
Back in March, the talk was that the planned $100m raising would include a $12.5m selldown by the Kannikoskis.
The proceeds would be applied to reducing Bhagwan’s bank debt, which stood at about $75m at the end of the 2022-23 financial year, according to its annual financial accounts.
Euroz Hartleys has used the market success of WA’s listed MMA Offshore to attract investors.
Bhagwan’s origins date to an investment in a namesake rock lobster boat, named for Mr Kannikoski’s “guru”-like success rate.
The current-day business was set up by the husband-and-wife team in 2000 to support an expansion into marine services for the oil and gas sector.
Bhagwan supports offshore facilities including Chevron’s Wheatstone gas platform and has a major contract to help decommission the US-owned energy group’s Thevenard Island oil and gas operations off the Pilbara.
The Bhagwan fleet includes harbour and coastal towage tugs, dive support vessels, landing craft, flat-top and crane barges, and crew transfer vessels.
Last financial year, the company lifted revenues 25.5 per cent to $168.9m and recorded a $17.3m net profit that included a $7.3m tax benefit.