Thursday, July 21, 2011

Bumi Armada set for strong start, bids above RM3.50

KUALA LUMPUR: The much-awaited listing of Bumi Armada Bhd is expected to see a strong start on Thursday, July 21, with pre-market opening bids above RM3.50.

Stock market data showed there were bids coming in as high at RM3.52. This is a hefty premium of 49 sen above its institutional price of RM3.03.

The final retail price was fixed at RM3.03 per share, which was 12 sen below the retail offering of RM3.15.

The listing exercise would enable Bumi Armada to raise RM2.66 billion which is the country's biggest IPO and the second largest in Southeast Asia so far this year.

At RM3.03, it is valued at more than 20 times price-to-earnings based on its FY2010 earnings per share of 11.9 sen.

The target price for the company ranges from RM3.62 to RM4.05, based on several research houses.

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