Friday, 1 July 2011
Bumi Armada launches IPO at RM2.03 billion
services Provider of offshore oil and gas industry internationally, Bumi Armada Bhd yesterday launched its initial public offering (IPO) valued at RM2.03 billion, after re-listing on the Main Market of Bursa Malaysia.
It was the largest IPO so far this year in the local stock market and one of the largest in Asia.
For the IPO, a company owned by tycoon Ananda Krishan is offering 644.26 million shares, of which 461.9 million was allocated to selected investors and foreign institutions, while 102.49 million to Bumiputera investors approved. A total of 79.86 million is being offered for subscription to retail investors, with 29.28 million for public subscription, while the 21:29 million for directors, employees and individuals who contributed to the success of the company. For the shares allocated to retail investors, it is offered at an indicative price of RM3.15 per share to the final price is determined after the pricing of the institution determined through the bidding process. Based on the indicative price for retail investors, the IPO Bumi Armada, will generate RM2.03 billion. It also puts the value of the company's market capitalization at about RM9.5 billion after the listing is scheduled on 21 July. Executive Director who is also Chief Executive of Bumi Armada, Assad Hassan Basma, said part of the capital raised from the IPO will be used to strengthen the company's business in existing markets. He said the company will explore the opportunities available in those markets as well as attempting to enter new markets in Latin America, Africa and Asia. "We are bidding for six projects, each on average worth between U.S. $ 300 million to U.S. $ 500 million domestically and abroad, "he said at a press conference after the prospectus launch IPO in Kuala Lumpur yesterday. Basma said, going forward, the strategic focus group is continuing its growth in four business segments of the marine transport ( FPSO), transportation and installation (T & I), offshore support vessels (OSV) and oilfield services (OFS).