UMW..jangkaan meletuppp..
kalau tak pergi jauh malah ke belakang jangan risau kawan menanti dengan senyuman....heheee
Raya ni pening, x sempat buat apa2 dgn IPO2 mendatang.... sauk listing jer ler....
Analyst: Bullish on UMW O&G proposed listing expected
The Malaysian Reserve
| August 19, 2013
ANALYSIS
KUALA LUMPUR: The proposed listing of UMW Holdings Bhd’s oil and gas (O&G) arm is likely to receive similar bullish response to the earlier government-linked companies (GLCs) exercises that were much sought after.
According to some investors and the predictions of analysts, UMW Oil and Gas (UMW-OG) shares allocated for Bumiputera investors under the initial public offering (IPO) could also be oversubscribed,
Several Bumiputera investors who applied for the shares told The Malaysian Reserve that they either received a nominal allocation or nothing at all due to overwhelming demand.
The UMW subsidiary is involved in provision of drilling and oilfield service. It plans to raise about RM3 billion in a listing exercise that will involve over two billion shares.
The stock is expected to be priced at RM2.80 per share, similar to the price listed for the Bumiputera investors who applied through the Ministry of International Trade and Industry (MITI).
About 843.18 million shares of 50 sen each would be made available in the IPO with a total of 611.8 million shares allocated to retail and institutional investors.
“It is likely to be oversubscribed as UMW is a well established brand name in the industry. Not all the assets will be listed, they are only listing the profitable assets, loss making assets are not listed,” said an analyst monitoring the IPO.
The group will sell 39% of its stake in the IPO and retain 61% stake in the soon-to-be listed company to be named as UMW-OG Group, according to Alliance Research.
The research note also said the listing would only comprise drilling and oil field services while the other unprofitable O&G associate (mainly manufacturing of pipes and fabrication) will be classified under the “other” division in the UMW Group, added
Funds raised from the IPO will be used to repay existing debts and fund capital expenditure (capex).
Another investment analyst added: “We understand that the responses have been overwhelming and the IPO could be oversubscribed. It is hot stock.”
The IPO joint-principal advisors are Maybank Investment Bank Bhd and CIMB Investment Bank Bhd.
Earlier, IPO of two major government-backed companies, hospital operator IHH Healthcare Bhd and Felda Global Ventures Holdings (FGVH), received astounding response from investors this year.
The group could be entering the IPO market at the ripe time after several Malaysian conglomerates successfully listed their assets, analysts felt.
FGVH, second-largest oil palm plantation company, raised RM9.93 billion in June, and was ranked world’s second biggest IPO after Facebook in 2012. FGVH was oversubscribed by 6.75 times.
Social networking service Facebook reportedly raised US$16 bil (RM53 bil).
IHH raised nearly RM6.72 bil (RM22 bil) in July that was considered the world’s third-largest IPO last year as well.
With the O&G sector looking more lucrative, UMW-OG is expected to enjoy healthy earnings in the coming years, analysts said.
Alliance maintains its “overweight call” on the O&G sector for 2013 as it predicts it would be another robust year.
UMW-OG itself registered a higher revenue of RM412.8 mil in the fourth-quarter 2012, as against RM334.5 mil recorded in the same quarter in 2011, an increase of RM78.3 million or 23.4 percent.
Its oil field services have operations in Malaysia, Thailand, China and Turkmenistan, providing oil country tubular goods threading, inspection and repair services focused on premium connections.
In 2010, UMW-OG had tried to list itself in Bursa Malaysia but plans fizzled out due unfavourable market conditions.
- This content is provided by FMT content partner The Malaysian Reserve.