Offer Period Open: 06-12-13
Offer Period Close: 13-12-13
Tentative listing date: 23-12-13
Number of shares:
Public Issue: 11,000,000
Private Placement: 69,000,000
Stock Code: KANGER
PUBLIC ISSUE OF 80,000,000 NEW ORDINARY SHARES OF RM0.10 EACH IN OUR COMPANY (“SHARES”) AT AN ISSUE PRICE OF RM0.25 PER SHARE PAYABLE IN FULL ON APPLICATION COMPRISING:
• 11,000,000 SHARES AVAILABLE FOR APPLICATION BY THE PUBLIC; AND
• 69,000,000 SHARES AVAILABLE FOR PLACEMENT TO SELECTED INVESTORS
IN CONJUNCTION WITH OUR LISTING ON THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD
Established in 2004, Kanger’s principal activity is the trading bamboo flooring and related products. The Group is recognised as the sole authorised bamboo supplier of B&Q China (one of the largest western home improvement retailers in China with currently approximately 40 stores across China and which is part of the Kingfisher PIc Group, Europe's largest home improvement retailer.)
In 2008, the Group started to venture upstream into manufacturing of bamboo flooring. The Group was soon capable of manufacturing various types’ products. At this point of time, the Group also expanded its sales market into the European Union. In 2011, the Group entered into bamboo research and development (“R&D”) with Forest Research Institute Malaysia (“FRIM”) on utilization of suitable Malaysian bamboo species for strand woven bamboo products. To date, the Group has 31 appointed “Kanger” retail stores which are mainly located in the Guangdong Province of China.
The Group has the capability of upstream and downstream production of bamboo products. The Group is fully equipped with R&D, manufacture, and distribution into the market for sales.
Kanger eyes RM20m from IPO to fund overseas expansion
KUALA LUMPUR: China-based Kanger International Bhd, an integrated manufacturer of bamboo products, hopes to raise RM20 million from its initial public offering to enable it to expand abroad.
Kanger managing director Leng Xingmin said it plans to extend further than its current markets of the United Arab Emirates, Romania, Russia and China.
"The forthcoming listing on Bursa Malaysia will serve as a platform to grow our business to the next level," Leng said at the launch of the company's listing prospectus, here, yesterday.
The company will be listed on Bursa Malaysia's ACE Market on December 23.
The listing entails a public issue of 80 million 10 sen shares at issue price of 25 sen each, of which 11 million shares are available for application by the public and 69 million for placement to selected investors.
"Kanger will be the 10th China company to be listed and the first and only ACE Market company to be listed on Bursa Malaysia this year.
"It will have a market capitalisation of RM107.5 million upon listing.
"It will also be the last Malaysian IPO of the year," said Kenanga Investment Bank Bhd head of corporate and institutional coverage Leong Yew Loong.
Kenanga Investment is the adviser, sponsor, underwriter and placement agent for the listing.
Kanger was set up in Malaysia on August 27 last year.
The company has an agreement with FRIM, signed in 2011, to collaborate and conduct research on suitable Malaysian bamboo species for development of strand woven bamboo planks and the ensuing application of these products.
On its 2012 results, Kanger corporate adviser Christoper Goy said the company is looking at a revenue of RM45 million to RM50 million, or a 20 per cent growth.
He said its audited third-quarter results will be announced on December 21.
Uphill task but Kanger feels at home
WITH a disapproving perception towards China-based stocks to battle with and a little known industry to promote, Kanger International Bhd may need to amp up its efforts to win over retail investors in Malaysia.
However, the bamboo products manufacturer is not fazed by what seems to be the odds stacked against it. It says it is focused on attracting “high net-worth individual investors.”
The company launched its prospectus yesterday, with the initial public offering (IPO) on Dec 23.
From its IPO proceeds of RM20mil, Kanger intends to use 10% for research and development, 5% for capital expenditure, 41% for working capital, 27% for repayment of borrowings and 16.5% for the listing exercise.
Kanger’s IPO price is set at 25 sen, confirming StarBizWeek’s story that the listing would likely be priced between 24 and 26 sen.
In the report last month, it was quoted that the IPO would be well-received because of its local ties – not only through the establishment of a local plant but also the Perlis royalty’s 6% shareholding.
Kanger’s public issue comprises an issuance of 11 million new Kanger shares offered to the public and 69 million new Kanger shares for private placement. Its market capitalisation upon listing is RM107.5mil while its total enlarged issued and paid-up share capital after listing would be RM43mil.
Kanger’s 2013 estimated price-to-earnings ratio (PE) was 21 times, based on the 2013 annualised diluted net earnings per share of 1.17 stated in its prospectus.
A check on Bloomberg shows that the average PE of companies in similar home improvement businesses was 34 times.
Its profit after tax (PAT) for the first half ending June 30, 2013 was RM2.5mil, while its full financial year (FY12) PAT was RM6.37mil. Its revenue for the two periods were RM21.38mil and RM38.56mil, respectively.
The company targets a 20% growth in revenue in FY14.
For chief executive officer and managing director Leng Xingmin, Malaysia has good potential for a bamboo industry, given its natural resources. Leng will be a 67% major shareholder in the listed entity.
Kanger’s main business is producing bamboo flooring planks for the construction industry. It has also begun venturing into making wall panels which will be marketed from next year.
Leng stresses that unlike other China stocks listed on Bursa Malaysia which have no assets, operations or end users in Malaysia, Kanger actually has ties with a local organisation – through its collaboration with the Forest Reserve Institute of Malaysia (FRIM).
“We are not a company that’s coming in to raise money from investors to fund far-away operations back in China. We have collaborated with Malaysians before and would continue to do so,” Leng tells StarBizWeek in an earlier interview.
In 2011, Kanger already entered a joint venture with FRIM to collaborate on bamboo research. From that, the China company has been involved in technology transfer with FRIM.
“We have used FRIM as a marketing channel as it endorses our products. Out testings are done in FRIM too,” the 43-year-old Jiangxin Province native says.
To further enhance this collaboration, Kanger plans to set up its research and development pilot plant in Malaysia, utilising RM2mil of its IPO proceeds. The local plant will be used for Kanger’s research on local bamboo species similar to those in China that the group uses as raw material for its semi-finished flooring products.
The venue for this investment has not been finalised.
Corporate advisor Christopher Goy says at a media conference after launching the prospectus that Kanger intends to start a full-capacity production plant in one to two years.
He points out that the local bamboo is not fully utilised currently, limited mostly to making local rice dish “lemang” and decoratives only.
Goy adds that Kanger’s research on local bamboo species in collaboration with FRIM is already 70% complete. Once completed, Kanger will decide on what facilities and equipment it needs for its Malaysian factory.
To that, Leng said Kanger wants to set up a factory “in an area with lots of bamboo growth.” The location, however, has also not identified.
Kanger already has two plants in China – a manufacturing plant in Ganzhou and a raw material manufacturing plant in Yanshan.
When quizzed during the interview if Kanger has difficulty seeking loans or funding in China, Leng denies, explaining that the IPO in Malaysia is purely to raise its corporate profile and not because it is fund-starved.
Leng says that while Kanger has a couple of competitors in Malaysia, the local technology in this industry is 10 to 15 years behind what the bamboo industry in China has advanced to.
The bamboo industry has been around for three decades in China, currently valued at about 10 billion yuan in sales.
“The industry is very competitive in China and it all depends on who can outshine the others,” Leng notes. “Demand for bamboo products has also risen recently, as more people become aware of green materials and bamboo is a renewable alternative to wood.”
Kanger is among the top 20 bamboo flooring manufacturers in China, he says, adding: “We see more demand coming from other countries as the awareness for environmentally-friendly materials increases in the property and construction industries.”
Aside from flooring and wall panels, the semi-finished bamboo products can be sold as material to make furniture and decoratives. Goy explains that Kanger is marketing its products as premium material. “Of course we cannot compare with wood like teak but our bamboo products are more expensive than the laminated wood flooring.”
Its key market is China, contributing up to 50% of its sales but it also exports to Russia, Turkmenistan, United Arab Emirates, Romania, Germany, France, Australia and the United States. It exports semi-finished bamboo products both as an original equipment manufacturer and under its house brand.
In certain markets, it has also set up outlets to market the Kanger brand bamboo products.
Kanger does not have any sales channel in Malaysia at the moment. Goy says the group wants to complete its R&D before seeking distribution agents.
“We are also exploring opportunities with local property developers and are open to working with the China developers who have projects here,” he says.
The group has not fixed any dividend policy but it plans to allocate 20% of its profits for that. “In the next year, we would need the funds to expand first,” Goy says.
Kanger will be the 10th China-based stock to be listed here. It is also the only ACE listing and last IPO on Bursa Malaysia this year.
Kenanga Investment Bank is the advisor, sponsor, underwriter and placement agent for the IPO.
Listing Sought: Main Market
Issue Price: RM 1.50
Par Value: RM 0.50
Offer Period Open: 11-11-13
Offer Period Close: 18-11-13
Tentative listing date: 27-11-13
Number of shares:
Public Issue: 81,705,000
Offer for Sale: 49,500,000
Private Placement: 58,705,000
Stock Code: TITIJYA
INITIAL PUBLIC OFFERING IN CONJUNCTION WITH OUR LISTING ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING:
(I) PUBLIC ISSUE OF 81,705,000 NEW ORDINARY SHARES OF RM0.50 EACH ("SHARES") IN THE FOLLOWING MANNER:
• 17,000,000 NEW SHARES AVAILABLE FOR APPLICATION BY THE PUBLIC;
• 6,000,000 NEW SHARES AVAILABLE FOR APPLICATION BY OUR ELIGIBLE DIRECTORS, EMPLOYEES AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF OUR GROUP;
• 34,000,000 NEW SHARES AVAILABLE FOR APPLICATION BY BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY;
• 24,705,000 NEW SHARES BY WAY OF PLACEMENT TO SELECTED INVESTORS;
(II) OFFER FOR SALE OF UP TO 49,500,000 EXISTING SHARES BY WAY OF PLACEMENT TO SELECTED INVESTORS,
AT AN ISSUE/OFFER PRICE OF RM1.50 PER SHARE, PAYABLE IN FULL UPON APPLICATION
Titijaya Land Berhad, an investment holding company, engages in the development and sale of properties in Malaysia. It develops residential properties, including condominiums, residential vacant land lots, and terrace houses; commercial properties comprising commercial centers, retail shops, serviced apartments/suites, shop offices, small office home offices, small office flexible offices, and studio office suites; and industrial properties, such as industrial lots, semi-detached factories, and detached factories. The company was formerly known as Meridian Flagship Berhad and changed its name to Titijaya Land Berhad in August 2012. Titijaya Land Berhad was incorporated in 2012 and is headquartered in Subang Jaya, Malaysia. Titijaya Land Berhad is a subsidiary of Titijaya Group Sdn Bhd.
Address and Contact
Titijaya Group of Companies
N-16-01, Penthouse, Level 16, First Subang,
Jalan SS15/4G, 47500 Subang Jaya,
Selangor Darul Ehsan, Malaysia.
Chief Executive Officer and Director: Mr. Lim Poh Yit (Age: 31)
Group Financial Controller: Ms. Wong Chow Won (Age: 54)
Group Managing Director: Prof. Lim Soon Peng (Age: 57)
Executive Director: Ms. Lim Puay Fung (Age: 33)
Company Secretary: Nutt Sao Bay
Titijaya Land eyes RM122.6m from IPO
KUALA LUMPUR, Nov 11 — Titijaya Land Bhd, en route to listing on the Main Market of Bursa Malaysia on November 27, aims to raise RM122.6 million from its public initial offering (IPO).
In a statement today, Titijaya said RM49.5 million of the proceeds would be used for working capital and RM15 million to repay bank borrowings. The rest would be used to repay advances from the previous shareholders of a subsidiary company (Epoch Property Sdn Bhd), purchase of land bank, and estimated listing expenses, it said.
The property developer said it would issue 81.7 million new ordinary shares of 50 sen each at an issue price of RM1.50.
“Of the shares, 17 million new issue shares will be for the public, six million new issue shares for eligable directors, employees and persons who have contributed to the success of the group, 34 million for Bumiputera investors approved by the Ministry of International Trade and Industry, and 24.7 million new issue shares by way of placement to selected investors,” it said.
Group operating officer Lim Poh Yit said the funds raised would enable the group to strengthen its position in the Klang Valley as well as encourage geographical expansion to other property hotspots via land bank acquisitions.
“Titijaya owns about 188 hectares of strategic land bank within the Klang Valley that are mostly concentrated in the Petaling and Klang districts,” Lim said. The group’s gross developement value (GDV) for ongoing projects has been estimated at RM1.08 billion.
“To date the company has developed over 3,000 units of properties with a completed GDV of RM1.14 billion,” he said.
Listing Sought: Main Market
Issue Price: RM 1.25
Par Value: RM 1.00
Offer Period Open: 18-10-13
Offer Period Close: 30-10-13
Tentative listing date: 13-11-13
Number of shares:
Public Issue: 35,000,000
Stock Code: CARING
INITIAL PUBLIC OFFERING IN CONJUNCTION WITH OUR LISTING OF CARING PHARMACY GROUP BERHAD (“CARING”) ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD OF A:PUBLIC ISSUE OF 35,000,000 NEW ORDINARY SHARES OF RM1.00 EACH IN CARiNG (“SHARES”) AT AN ISSUE PRICE OF RM1.25 PER SHARE PAYABLE IN FULL UPON APPLICATION COMPRISING:
10,886,000 NEW SHARES MADE AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC;
5,716,000 NEW SHARES MADE AVAILABLE FOR APPLICATION BY THE ELIGIBLE DIRECTORS, ELIGIBLE EMPLOYEES AND SHAREHOLDERS OF SUBSIDIARIESOF THE CARiNG GROUP;
4,200,000 NEW SHARES MADE AVAILABLE FOR BUMIPUTERA INSTITUTIONAL AND SELECTED INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY; AND
14,198,000 NEW SHARES MADE AVAILABLE BY WAY OF PRIVATE PLACEMENT TO SELECTED INVESTORS.
Caring Pharmacy To Raise Up To RM43.75 Million From IPO
KUALA LUMPUR, Oct 18 (Bernama) -- Caring Pharmacy Group Bhd (CARING), en route to a listing on the Main Market of Bursa Malaysia on Nov 13, aims to raise RM43.75 million in gross proceeds from its initial public offering (IPO).
The company is expected to have a market capitalisation of RM272.13 million upon listing, based on the IPO price of RM1.25 per share, the company said in a statement Friday.
It said 41 per cent of the proceeds would be utilised to open new pharmacy outlets and another 27 per cent would go towards working capital purposes.
"The listing of CARiNG is a strategic move for our Group as we aim to accelerate overall growth and to fortify our strong position within the market.
"We have worked hard over the years to improve CARiNG's economies of scale which are reflected in our proven performance record as well as sustainable revenue and profit growth since our establishment," said Managing Director Chong Yeow Siang.
Under the IPO exercise, the company is making a public issue of 35 million new shares, out of which 10.886 million shares will be made available for public subscription.
Kenanga Investment Bank Bhd is the principal adviser, managing underwriter, joint underwriter and joint placement agent for the IPO.
cruger12345sephiroth... It is a asset light company. As long as the PE at the reasonable range which is 13.24 I don't see the downside of it. If you base on NTA to judge a company value Btoto will be super overvalued.
cruger12345I vet thorugh this company it is actually not bad and not really expensive as compare to the others IPO. I will apply for this. Wish me luck ... Need a lot of it
sephirothcruger, pe of 13 for a small company is consider excessive, most of the good fundamental small stocks are all trading below 10 times eg. fibon,mmode, skpres coz small cap stocks won't attract big funds
lloydlimGuys, can guide me how to apply this IPO through CIMB ATM machine, thanks!
harrykokHi ohy2012,read the feed back from xyzsim? It could be Maybank's Eshare site NOT updated for this IPO yet. Alternatively, apply through the traditional way, using application form that can be obtained from broking firms. Ya, a bit hassle coz needs to secure bank draft/photostated IC and postage money. Best of Luck!
ohy2012Thanks harrykok. Maybe we hope that MAYBANK will update for this IPO soon.
Listing Sought: Main Market
Issue Price: RM 0.70
Par Value: RM 0.50
Offer Period Open: 18-10-13
Offer Period Close: 1-11-13
Tentative listing date: 18-11-13
Number of shares:
Public Issue: 41,314,000
Private Placement: 41,449,000
Stock Code: BJAUTO
PUBLIC ISSUE OF 82,763,000 NEW ORDINARY SHARES OF RM0.50 EACH IN BERJAYA AUTO BERHAD (“BAUTO”) (“ISSUE SHARES”) COMPRISING:
41,449,000 ISSUE SHARES ALLOCATED BY WAY OF PRIVATE PLACEMENT TO MALAYSIAN INSTITUTIONAL AND SELECTED INVESTORS;
10,157,000 ISSUE SHARES ALLOCATED TO BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY;
19,157,000 ISSUE SHARES RESERVED FOR APPLICATION BY THE ENTITLED SHAREHOLDERS OF BERJAYA CORPORATION BERHAD (AS DEFINED HEREIN); AND
12,000,000 ISSUE SHARES RESERVED FOR APPLICATION BY THE ELIGIBLE DIRECTORS AND EMPLOYEES OF BAUTO AND ITS SUBSIDIARIES (“BAUTO GROUP”), AND THE ELIGIBLE BUSINESS ASSOCIATES WHO HAVE CONTRIBUTEDTO THE SUCCESS OF THE BAUTO GROUP,
SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISIONS AT AN ISSUE PRICE OF RM0.70 PER ISSUE SHARE IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR THE ENTIRE ENLARGED ISSUED AND PAID-UP SHARECAPITAL OF BAUTO ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD.
Company Overview of Berjaya Auto Berhad
Berjaya Auto Berhad, an investment holding company, engages in the distribution and retailing of new and used Mazda vehicles in Malaysia. It also provides after sales services for Mazda vehicles. In addition, the company is involved in purchasing, acquiring, owning, leasing, selling, transferring, encumbering, and dealing in various new automobiles, trucks, and other motor vehicles; and dealing in a range of supplies used by various motor vehicles. It distributes Mazda vehicles to various retail customers across demographic groups through its own branches and dealers. The company was incorporated in 2010 and is headquartered in Shah Alam, Malaysia. Berjaya Auto Berhad is a subsidiary of Berjaya Corporation.
Berjaya Auto To Raise RM57.93 Million From IPO
KUALA LUMPUR, Oct 18 (Bernama) -- Berjaya Auto Bhd (BAuto) will offer 82.76 million new ordinary shares under its initial public offering (IPO) at an offer price of 70 sen apiece to raise RM57.93 million.
In a filing to Bursa Malaysia on Friday, BAuto said of the 82.76 million new shares, 41.45 million shares will be placed out to Malaysian institutional and selected investors.
It said 10.16 million shares will be allocated to Bumiputera investors while 19.16 million shares will be reserved for entitled shareholders of Berjaya Corp Bhd.
The remaining 12 million shares were reserved for eligible directors and employees, it said.
It said the tentative listing date will be on Nov 18, 2013.
Listing Sought: Main Market
Issue Price: RM 1.85
Par Value: RM 0.25
Offer Period Open: 11-10-13
Offer Period Close: 23-10-13
Tentative listing date: 6-11-13
Number of shares:
Public Issue: 20,250,000
Offer for Sale: 27,000,000
Private Placement: 20,250,000
Stock Code: KAREX
INITIAL PUBLIC OFFERING OF 67,500,000 ORDINARY SHARES OF RM0.25 EACH IN KAREX BERHAD (“KAREX”) (“SHARES”) COMPRISING A PUBLIC ISSUE OF 40,500,000 NEW SHARES (“ISSUE SHARES”) AND AN OFFER FOR SALE OF 27,000,000 EXISTING SHARES (“OFFER SHARES”) AT RM1.85 PER SHARE INVOLVING:
I. THE INSTITUTIONAL OFFERING OF 47,250,000 SHARES COMPRISING 27,000,000 OFFER SHARES AND 20,250,000 ISSUE SHARES TO INSTITUTIONAL AND SELECTED INVESTORS IN MALAYSIA, SINGAPORE AND HONG KONG; AND
II. THE RETAIL OFFERING OF 20,250,000 SHARES COMPRISING:
- 13,500,000 ISSUE SHARES MADE AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC; AND
– 6,750,000 ISSUE SHARES MADE AVAILABLE FOR APPLICATION BY ELIGIBLE DIRECTORS, EMPLOYEES, BUSINESS ASSOCIATES AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF KAREX AND ITS SUBSIDIARIES,
SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISIONS.
Karex aims to raise RM75 mln from November 6 IPO
KUALA LUMPUR: World’s largest condom manufacturer, Karex Bhd (Karex), en route to a listing on Bursa Malaysia on November 6, aims to raise RM75 million from sales of its 40.5 million new shares at RM1.85 each.
Chief executive officer, Goh Miah Kiat, said from the total proceeds, RM42 million will be used for capital expenditure, RM14 million for working capital, RM10 million to repay bank borrowings, RM5 million for listing expenses and RM4 million for research and development.
“The listing will enable us to leverage on the growing opportunities in the global condom industry,” he said at the launch of the initial public offering (IPO) prospectus here yesterday.
Goh said the fund raised for the group’s capital expenditure would be used to expand the manufacturing facilities.
He said the group was ready to develop its largest factory in Pontian, Johor, which was not far from the company’s existing plant.
Goh expected construction of the new factory at the 7.28-hectare site to begin by early next year and be completed by end-2014.
“Upon completion of the expansion of the factory, we expect our total annual production capacity to increase from the current three billion pieces to six billion by end-2015,” he said.
Besides Pontian, the company also has factories in in Klang, Selangor and Hat Yai, Thailand, he said.
He said the expected increase in its annual production capacity was also in tandem with the acceleration in demand of condoms worldwide.
The global condom market was expected to grow at compound annual growth rate of 7.5 per cent from 22.8 billion pieces last year to 30.4 billion pieces in 2016, he said.
Goh said Karex, which currently has 10 per cent of the global market share, expected it to increase to double digits with the increase in demand for condoms worldwide.
In a statement, Karex said the IPO involved the offer of 67.5 million shares comprising the public issue of 40.5 million new shares and an offer for sale of 27 million existing shares.
“Of these, 47.25 million IPO shares are for institutional and selected investors in Malaysia, Singapore and Hong Kong while 20.25 million shares are for Malaysian retail investors.
“The retail offering of 20.25 million shares would comprise of 13.50 million offer shares to the public and the remaining 6.75 million issue shares to eligible directors, employees and business associates,” it said.
Application for the Karex’s IPO will be closed at 5pm on Oct 23, 2013. RHB Investment Bank Bhd is the principal adviser, underwriter and joint placement agent for the IPO. ZJ Advisory Sdn Bhd and CIMB Investment Bank Bhd are the financial adviser and the joint place agent respectively.
Besides condoms, Karex also produces catheters, latex probe covers and lubricating jelly. — Bernama
Listing Sought: Main Market
Issue Price: RM 2.80
Par Value: RM 0.50
Offer Period Open: 3-10-13
Offer Period Close: 14-10-13
Tentative listing date: 1-11-13
Number of shares:
Public Issue: 611,800,000
Offer for Sale: Up to 231,380,000
Stock Code: UMWOG
INITIAL PUBLIC OFFERING (“IPO”) OF UP TO 843,180,000 ORDINARY SHARES OF RM0.50 EACH IN UMW OIL & GAS CORPORATION BERHAD (“UMW-OG”) (“IPO SHARES”) COMPRISING AN OFFER FOR SALE OF UP TO 231,380,000 EXISTING SHARES (“OFFER SHARES”) AND A PUBLIC ISSUE OF 611,800,000 NEW SHARES (“ISSUE SHARES”) IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR THE ENTIRE 2,162,000,000 ORDINARY SHARES OF RM0.50 EACH IN UMW-OG (“SHARES”) ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD, IN THE FOLLOWING MANNER:
(I) INSTITUTIONAL OFFERING OF UP TO 648,600,000 IPO SHARES TO MALAYSIAN AND FOREIGN INSTITUTIONAL AND SELECTED INVESTORS, INCLUDING BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY AT THE INSTITUTIONAL PRICE TO BE DETERMINED
BY WAY OF BOOKBUILDING (“INSTITUTIONAL PRICE”); AND
(II) RETAIL OFFERING OF 194,580,000 IPO SHARES TO THE ELIGIBLE DIRECTORS AND EMPLOYEES OF UMW-OG GROUP, THE ELIGIBLE DIRECTORS AND EMPLOYEES OF UMW HOLDINGS BERHAD (“UMWH”) AND ITS SUBSIDIARIES, THE ENTITLED SHAREHOLDERS OF UMWH AND THE MALAYSIAN PUBLIC, AT THE RETAIL PRICE OF RM2.80 PER SHARE (“RETAIL PRICE”), PAYABLE IN FULL UPON APPLICATION AND SUBJECT TO REFUND OF THE DIFFERENCE BETWEEN THE RETAIL PRICE AND THE FINAL RETAIL PRICE IN THE EVENT THAT THE FINAL RETAIL PRICE IS LESS THAN THE RETAIL PRICE,
SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISIONS AND OVER-ALLOTMENT OPTION. THE FINAL RETAIL PRICE WILL EQUAL THE LOWER OF:
(I) THE RETAIL PRICE OF RM2.80 PER SHARE; AND
(II) THE INSTITUTIONAL PRICE,
SUBJECT TO ROUNDING TO THE NEAREST SEN.
UMW Oil & Gas offer oversubscribed by more than 10 times
Posted on October 4, 2013, Friday
KUALA LUMPUR: The institutional offer of UMW Oil & Gas Corp Bhd’s (UMW Oil & Gas) US$740 million initial share sale in Malaysia has been oversubscribed by more than ten times, according to a financial source with direct knowledge of the deal.
The institutional tranche, which makes up 15.11 per cent of the offering, has been mostly subscribed at the top end of a range set between RM2.70 to RM2.80 per share on the first day, the source told Reuters on yesterday.
At the top price, UMW Oil & Gas, an offshore and drilling services firm in Malaysia, will raise up to RM2.36 billion (US$731.33 million), making it the largest IPO in Malaysia so far this year.
The range values the company, a unit of state-linked conglomerate UMW Holdings Bhd, at a forward price-to-earnings ratio of 17.7 to 18.3 times.
UMW Oil & Gas officials declined to comment.
The firm’s parent plans to take RM647.9 million of the proceeds to pay debt and finance capital expenditure, while UMW Oil & Gas will use the remaining RM1.7 billion to buy rigs, clear debts and pay listing expenses.
The final pricing is expected to be fixed on October 17, with listing on the local bourse scheduled on November 1, according to its prospectus launched yesterday.
CIMB, Credit Suisse, Goldman Sachs and Maybank are the joint global co-ordinators for UMW Oil & Gas, and also the joint bookrunners with Standard Chartered. - Reuters
UMW Oil and Gas indicative retail price at RM2.80 per share
KUALA LUMPUR: UMW Oil & Gas Corp Bhd has set an indicative retail price at RM2.80 per share under its listing exercise on the Main Market of Bursa Malaysia, valuing the company at RM6.05bil.
In its prospectus issued on Thursday, it said the IPO would involve up to 843.18 million shares of 50 sen each, comprising of an offer for sale of up to 231.38 million existing shares and a public issue of 611.80 million new shares.
Based on the public issue of 611.80 million new shares, this would enable it to raise RM1.71bil.
The offer shares are in conjunction with the listing of the entire 2.162 billion shares, which would see its market capitalisation at RM6.05bil.
Under the listing exercise, the institutional offer is up to 648.60 million IPO shares to Malaysian and foreign institutional and selected investors, including Bumiputera investors at the institutional to be determined by bookbuilding.
The retail offering of 194.58 million IPO shares would be for eligible directors and staff and Malaysian public at the retail price of RM2.80 per share.
The tentative listing date is Nov 1.
On its dividend policy, UMW O&G said while it does not have any fixed policy, “we intend to adopt a policy of active capital management”.
Its president Rohaizat Darus said with UMW-OG's planned debut on Bursa Malaysia soon, it would continue to strive for superior operational and financial performance to achieve sustainable long term growth.
“Our regional expansion is also on track with the award of three new contracts in the last six months, in addition to another contract in Thailand, which bodes well for the company's prospects moving forward," he said.