Wednesday, May 4, 2011


Bumi Armada to launch US$1b IPO

May 04, 2011

KUALA LUMPUR, May 4 — Oil and gas services provider, Bumi Armada, plans to raise nearly US$1 billion (RM2.97 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 US$1 billion IPO, which values the company at about 20 times price-earnings for its 2011 earnings, and 16 times for 2012,” a banking source told Reuters today.

Bumi Armada’s Chief Executive Officer Hassan Basma could not be reached for comment.

Yesterday, IFR, a Thomson Reuters service, reported that Bumi Armada was expected to file a draft prospectus with the Malaysian regulators this week for an IPO of around US$800 million.

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.

Bumi Armada’s IPO, which will be one of the largest announced in Southeast Asia this year, was delayed several times in the past few years.

The company 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 US$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. — Reuters

Harga Indikatif akan diketahui pada 30 Mei 2011.

***Harga dianggarkan sekitar RM3.00. Dengan nada kecewa, ada yang mengeluh, delisted pada 2002 dengan PE 7X dan akan relist pada 2011 dengan PE 20X...apa makna nya tu!***




KUALA LUMPUR: Touted as the largest initial public offering this year, Bumi Armada Bhd's draft prospectus was uploaded for comments a second time due to the appointment of two new independent directors.

While various changes were made to the document, the key reason it was exposed for comments again was due to the appointments.

The first draft prospectus was disclosed on May 4 for a period of 15 working days.

The updated version posted on June 10 follows the appointment of Dutch national Alexandria Elisabeth Johanna Maria Schaapveld, 52; and Australian Andrew Philip Whittle, 65; as independent non-executive directors of the company on June 8.

Schaapveld has more than 20 years experience in the banking sector, while Whittle has over 42 years of technical and managerial experience in the petroleum exploration and production industry.

The appointments bring the number of independent directors on the board to three, from only one when the first draft prospectus was out.

The other independent director, Saiful Aznir Shahabudin, has been with the company since December 2006.

The updated version will be closed for comments today, after opening for comments for five working days.

The draft prospectus also stated that the company will allocate RM775 million from the proceeds of the initial public offering to partly pay its borrowings.

While past reports speculated that the IPO will raise about RM3 billion, a recent report in a business daily claimed that the number could go up to RM9 billion.

According to the updated draft prospectus, Bumi Armada's IPO would comprise of an offer for sale of up to 234,277,000 existing shares and a public issue of up to 644,261,600 new shares.