STX OSV (MS7.SG) +4.4% at $0.83 in active trade on NOK1.3 billion ($280.7 million) boost to orderbook as shipbuilder secures contracts to build 4 platform supply vessels for repeat customer Farstad Shipping, according to Dow Jones.
Stock likely to close up for first time in 3 sessions, but below $0.88 intraday high reached on listing last Friday. Deals bring total value of contracts clinched this year to about US$2 billion, coincide with company’s plans to boost production capacity. $131.6 million net proceeds raised from IPO will be used to build second shipyard in Brazil, expand yard capacities in Norway, Vietnam and Romania, fund potential acquisitions.
Latest projects will be built in Norway, Vietnam, with vessels scheduled for delivery in 2012-2013.
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