Thursday, June 30, 2011

Bumi Armada tendering for 6 jobs worth US$300m to US$500m each

KUALA LUMPUR: Main Board bound Bumi Armada Bhd is tendering for six floating production, storage and offloading (FPSO) jobs worth between US$300 million and US$500 million each.

Its chief executive officer Hassan Basma said on Thursday, June 30 the company had an orderbook of RM5.8 billion as at June 1, with optional extension periods valued at RM2.5 billion.

He said this excluded revenues from its LOA with Apache for the Armada Prima FPSO and its second letter of award with ONGC for the D-1 Field FPSO.

Hassan was speaking to reporters at the launch of the prospectus. The company plans to raise between RM1.9 billion and RM2 billion from its initial public offering exercise.

Hassan said of the IPO proceeds, about RM592 million would be for capital expenditure.

"We intend to add one FPSO per year to our portfolio," he said, adding the company aims to become the fourth largest in the world by 2013 from eight placing currently.

Bumi Armada's IPO involves up to 878.54mil with up to 234.28mil offered to institutional investors by way of book building.

The comeback of the company, which is controlled by tycoon T. Ananda Krishnan, is also expected to be the year's biggest IPO on Bursa Malaysia. It was delisted in 2003.

After listing, Hassan said Ananda's vehicle Usaha Tegas via Objektif Bersatu Sdn Bhd will own some 43% in the company from 54% now as a result of dilution of shares.

Bumi Armada is offering for sale of 644.26 million new shares under its listing exercise and which could see it raising RM2.029 billion.

The entire listing exercise would involve an offer for sale of 878.538 million shares of 20 sen each.

This would involve an offer for sale of up to 234.27 million existing shares of which there is an institutional offering of up to 234.277 million shares to approved Bumiputera investors at the institutional price to be determined by way of bookbuilding.

There will be a public issue of 644.261 million new shares, of which 564.40 million shares would be allocated to Malaysian and foreign institutional and selected investors, including approved Bumiputera investors at the institutional price.

The remaining 79.861 million shares (out of the 644.261 million new shares) will be offered to the public, the directors of Bumi Armada, and eligible employees at the retail price of RM3.15 per share.

It would be payable in full upon application and subject to a refund of the difference in the event that the final retail price is less than the retail price.

Of the RM2.029 billion which it would raise, about RM775 million would be used to repay bank borrowings within six months while RM592 million would be for capital expenditure.

It added that RM562 million would be for working capital and the remaining RM100 million for estimated listing expenses.

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