Neptune Marine Services Limited today announced details of a $2.5 million Initial Public Offering (IPO) and hopes to list on the ASX in March 2004.
Perth-based Neptune plans to use the proceeds of the IPO to internationally commercialise its technology which produces a "dry" weld underwater and in-situ to the same standards achievable through normal dry welding on land.
Known as "Neptune Dry Welds", the technology has already been successfully used in Australia on ships and on a hydro electric project in the Philippines.
Prominent international class societies including the American Bureau of Shipping, have already approved the Neptune process for use.
"Such certification gives the process the opportunity to capture a slice of the global underwater construction and engineering market estimated to be worth in excess of US$10 billion a year by 2005," said Neptune's executive director, Andrew Harrison.
"Our initial focus will be repairing ships in Australia, and also Singapore - the third largest port in the world by volume and tonnage," he said.
"Once established in these key markets, we plan to expand to the United States and Europe, in parallel with further research, development and licencing initiatives.
"Underwater repairs worldwide are a multi-billion dollar a year business and our objective is to win a fraction of that, including Australia's massive offshore oil and gas industry."
The completed weld does not suffer the limitations of wet welds where hydrogen embrittlement from gas trapped in the weld, limits weld quality and duration.
The Neptune system can operate at depths of up to 200 metres, but most work is expected to be undertaken at around 50 metres or less.
Neptune expects to list on the ASX by 22 March 2004 with total ordinary shares on issue of 29.9 million, including 17.4 million currently on issue, plus 18.3 million options.
"The Company will source a significant part of its business initially from ship repairs able to be undertaken at sea, as well as during loading or unloading and normal scheduled berthing, to minimise a ship's repair downtime and cost," said Harrison.
