Thursday, August 18, 2011

GAS MALAYSIA IPO

MMC to raise RM167m from Gas Malaysia IPO

KUALA LUMPUR, Aug 16 — Builder MMC said today it will raise up to RM167 million when it lists subsidiary Gas Malaysia on the main market of the Kuala Lumpur stock exchange.

MMC said it expects to complete the listing exercise by the last quarter of 2011. The listing represents about 26 per cent of Gas Malaysia’s entire share capital valued at RM642 million.

Gas Malaysia distributes gas to residential, commercial and industrial customers in peninsular Malaysia.

“The proposed listing will enable MMC and its subsidiaries to accelerate the growth of gas supply and distribution business under Gas Malaysia,” MMC said in a filing to the stock exchange.

MMC appointed Maybank Investment to advise on the IPO. — Reuters


Gas Malaysia IPO to raise around RM750m

UPDATED @ 12:58:14 PM 17-08-2011
August 17, 2011

KUALA LUMPUR, Aug 17 — Malaysian builder MMC will raise up to RM750 million, or about RM2.25 per share, from the listing of its unit Gas Malaysia on the Kuala Lumpur stock exchange, a source with direct knowledge of the deal said.

MMC said in an exchange filing yesterday that it would sell about 333.8 million shares, or 26 per cent of Gas Malaysia’s entire share capital. It said the share capital was valued at RM642 million at par.

“They are looking to raise about RM750 million by the end of this year,” said the source, who cannot be identified as the IPO has not been formally announced yet.

Newly-listed Malaysian companies have generally had mixed performances this year owing to volatile capital markets.

While bigger listings such as Bumi Aramada and MSM Malaysia Holdings have generally rewarded investors well for their initial buy-ins, smaller IPOs have seen prices take a beating from negative sentiment.

Gas Malaysia, based on the indicative pricing, is valued at about RM3 billion.

“The listing is definitely interesting because it’s a play on the industrialisation of Malaysia and the increased usage of gas, and it’s a good, stable utility business,” said HwangDDS Investment Management’s equities investment head Gan Eng Peng.

Gas Malaysia’s offering follows the listing of offshore oil and gas service provider Bumi Armada, which raised RM2.66 billion last month from the country’s largest initial public offering this year.

“There could be (a series of IPOs now). A couple of them this year and more next year,” a research analyst from TA Securities said.

“Petronas Carigali or Petronas Penapisan could be listed next year or the end of this year. Downstream players look more attractive at this point of time,” he added.

MMC in its exchange filing yesterday said it expected to complete the listing by the last quarter of 2011.

“The proposed listing will enable MMC and its subsidiaries to accelerate the growth of gas supply and distribution business under Gas Malaysia,” MMC said in a filing to the stock exchange.

Gas Malaysia distributes gas to residential, commercial and industrial customers in peninsular Malaysia.

The investment arm of Maybank , Malaysia’s largest lender, has been appointed the adviser for the IPO.

Malaysia’s oil and gas sector is changing rapidly as dwindling supplies of local oil and gas have pushed state oil firm Petronas and the government to take immediate steps to arrest the decline.

Petronas has accelerated its capital expenditure to RM300 billion over the next five years — from RM35 billion it spent in the 2010/11 fiscal year — while the government has made sector consolidation a key agenda in its 10-year plan of economic rejuvenation. — Reuters