KUALA LUMPUR/SINGAPORE:'' Malaysian oil and gas services provider, Bumi Armada, plans to raise nearly $1 billion from its initial public offer, the largest offer in Malaysia since the listing of Petronas Chemicals last year, sources with direct knowledge of the deal told Reuters.
"It is a $1 billion IPO, which values the company at about 20 times price-earnings for its 2011 earnings, and 16 times for 2012," a source told Reuters on Wednesday, May 4.
The sources could not be identified as they were not authorised to speak to the media.
Bumi Armada's Chief Executive Officer Hassan Basma could not be reached for comment.
The company filed a draft prospectus for its IPO with the country's securities regulator.
Bumi Armada said it plans to sell 878.6 million shares, of which 644.3 million are new shares and the rest are existing shares held by its present shareholders through the IPO.
The draft prospectus did not detail the timeline of the share offer or the composition of shares that will be made available to institutional and retail investors, as is the practice for draft filings in Malaysia.
Bumi Armada specialises is an offshore support specialist, and is the only Malaysian company that owns floating production storage and offloading (FPSO) vessels, which carry a premium lease rate.
The IPO, which will be one of the largest announced in Southeast Asia this year, has been delayed several times in the past few years.
Bumi Armada was privatised in 2003 by tycoon T. Ananda Krishnan, and a planned relisting in 2008 was delayed due to the global financial crisis. A subsequent relisting plan was also shelved.
One fund manager said the Malaysian market had appetite to support an IPO of Bumi Armada's size.
"I don't know whether it's the same company as it was in 2003 when it delisted, because I've been told they've injected other assets," MIDF Amanah Asset Management's Chief Executive Officer Scott Lim told Reuters, saying he needed more information on the company before deciding whether to invest in the stock.
The Malaysian oil and gas sector has been identified as one of the key economic areas under the government's economic transformation programme, which aims to boost investment and raise the national income level.
The country has also seen significant investment commitments from foreign companies, such as a total of $4.9 billion by Exxon Mobil and Royal Dutch Shell, to develop new assets in the country, the government has said.
The joint global coordinators for the IPO are CIMB , Maybank and Credit Suisse, which are also joint bookrunners with RHB , CLSA and UBS , according to the draft prospectus. - Reuters
"It is a $1 billion IPO, which values the company at about 20 times price-earnings for its 2011 earnings, and 16 times for 2012," a source told Reuters on Wednesday, May 4.
The sources could not be identified as they were not authorised to speak to the media.
Bumi Armada's Chief Executive Officer Hassan Basma could not be reached for comment.
The company filed a draft prospectus for its IPO with the country's securities regulator.
Bumi Armada said it plans to sell 878.6 million shares, of which 644.3 million are new shares and the rest are existing shares held by its present shareholders through the IPO.
The draft prospectus did not detail the timeline of the share offer or the composition of shares that will be made available to institutional and retail investors, as is the practice for draft filings in Malaysia.
Bumi Armada specialises is an offshore support specialist, and is the only Malaysian company that owns floating production storage and offloading (FPSO) vessels, which carry a premium lease rate.
The IPO, which will be one of the largest announced in Southeast Asia this year, has been delayed several times in the past few years.
Bumi Armada was privatised in 2003 by tycoon T. Ananda Krishnan, and a planned relisting in 2008 was delayed due to the global financial crisis. A subsequent relisting plan was also shelved.
One fund manager said the Malaysian market had appetite to support an IPO of Bumi Armada's size.
"I don't know whether it's the same company as it was in 2003 when it delisted, because I've been told they've injected other assets," MIDF Amanah Asset Management's Chief Executive Officer Scott Lim told Reuters, saying he needed more information on the company before deciding whether to invest in the stock.
The Malaysian oil and gas sector has been identified as one of the key economic areas under the government's economic transformation programme, which aims to boost investment and raise the national income level.
The country has also seen significant investment commitments from foreign companies, such as a total of $4.9 billion by Exxon Mobil and Royal Dutch Shell
The joint global coordinators for the IPO are CIMB , Maybank and Credit Suisse, which are also joint bookrunners with RHB , CLSA and UBS , according to the draft prospectus. - Reuters
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