UMW Oil and Gas Corp gained as much as 10.7 per cent on its debut trading in Kuala Lumpur after completing a RM2.36 billion initial public offering, the biggest in Malaysia this year.
The oil and has services provider's shares climbed to as high as RM3.10 from an offer price of RM2.80 for individuals and institutions. The stock was the most-active in Kuala Lumpur, with 136 million units changing hands as of 10.52am local time, according to data compiled by Bloomberg. The FTSE Bursa Malaysia KLCI index was 0.2 per cent higher.
UMW Oil and Gas was spun off by car assembler UMW Holdings Bhd to help it raise funds more easily as the energy industry is capital intensive, chairman Tan Sri Asmat Kamaludin said in June. At the RM2.80 IPO price, the stock was valued at 29 times its fiscal 2013 earnings, according to HwangDBS Malaysia Bhd report on October 11. That compares with an industry average of 43.7 times in Malaysia, data compiled by Bloomberg show.
"Investors are buying because they're confident that UMW Oil's future profits will be good," Ang Kok Heng, who helps manage US$428 million in Kuala Lumpur as chief investment officer at Phillip Capital Management Sdn, said in an interview today. "Since sentiment on oil and stocks is strong, people also don't mind paying a high price-earnings multiple."
Ang said he subscribed to shares during the offering.
UMW Oil, which manufactures pipes and provides services including offshore drilling and pipe-coating, priced the IPO at the top of its marketed range after attracting institutional demand of more than 50 times the number of shares offered, two people familiar with the IPO said October 11.
The company, in which UMW Holdings holds a 61 per cent stake, has "explosive" earnings growth potential from its jack-up rig business, HwangDBS wrote in the report, setting a fair value of RM3.20
2013年11月1日星期五
UMW Oil makes impressive Bursa debut
UMW Oil and Gas Corporation Bhd (UMW-OG) made an impressive 20 sen premium debut on the main market of Bursa Malaysia today, and aims to increase its overseas contribution by the second quarter of next year.
President Rohaizad Darus said the leading oil and gas player, was looking at opportunities in the Asia Pacific region in the long term.
"With our drilling rig, Naga 3, catering to a contract scheduled to commence in Vietnam next year, we are looking at more forays into the overseas market," he added.
He was speaking at a press nonferrous in conjunction with UMW-OG's listing on Bursa Malaysia, which is the country's largest for 2013.
UMW-OG has four drilling rigs and is expected to take delivery of another next year.
According to Rohaizad, who is also UMW-OG's non-Independent executive director, about 30 per cent of the company's business at present comes from operations in Thailand, Vietnam, China and Turkmenistan.
In Malaysia, UMW-OG has eight to 12 existing contracts, which are due to expire by the end of next year.
Rohaizad said UMW-OG is also looking into buying more rigs and the listing is to secure additional funds for this purpose.
UMW-OG's Initial Public Offering (IPO) raised approximately RM2.7 billion.
Its market capitalisation based on the price of RM2.80 per share for the enlarged share capital of 2.162 billion shares post-listing, is about RM6.1 billion.
Of the IPO, the company has allocated a large portion of its total gross proceeds of approximately RM1.7 billion to acquire, upgrade and maintain drilling rigs and hydraulic workover units, as well as acquire and upgrade machineries for oilfield services as part of capital expenditure.
Rohaizad said UMW-OG's core business remains in the shallow water and due to the shortage of rigs, is unable to leverage on all the opportunities within the region.
"For the next five years, there are enough opportunities in the South-East Asian region," he added.
on UMW-OG's dividend policy, he said, there was no fixed policy but in the long term, the company aims to give out dividends on an increasing quantum.
He also described UMW-OG's share price performance on the Bursa Malaysia as commendable, with a comfortable premium based on the current market situation.
As at mid-day, the counter jumped 32 sen above its IPO price at RM3.12, with 175.46 million shares transacted
President Rohaizad Darus said the leading oil and gas player, was looking at opportunities in the Asia Pacific region in the long term.
"With our drilling rig, Naga 3, catering to a contract scheduled to commence in Vietnam next year, we are looking at more forays into the overseas market," he added.
He was speaking at a press nonferrous in conjunction with UMW-OG's listing on Bursa Malaysia, which is the country's largest for 2013.
UMW-OG has four drilling rigs and is expected to take delivery of another next year.
According to Rohaizad, who is also UMW-OG's non-Independent executive director, about 30 per cent of the company's business at present comes from operations in Thailand, Vietnam, China and Turkmenistan.
In Malaysia, UMW-OG has eight to 12 existing contracts, which are due to expire by the end of next year.
Rohaizad said UMW-OG is also looking into buying more rigs and the listing is to secure additional funds for this purpose.
UMW-OG's Initial Public Offering (IPO) raised approximately RM2.7 billion.
Its market capitalisation based on the price of RM2.80 per share for the enlarged share capital of 2.162 billion shares post-listing, is about RM6.1 billion.
Of the IPO, the company has allocated a large portion of its total gross proceeds of approximately RM1.7 billion to acquire, upgrade and maintain drilling rigs and hydraulic workover units, as well as acquire and upgrade machineries for oilfield services as part of capital expenditure.
Rohaizad said UMW-OG's core business remains in the shallow water and due to the shortage of rigs, is unable to leverage on all the opportunities within the region.
"For the next five years, there are enough opportunities in the South-East Asian region," he added.
on UMW-OG's dividend policy, he said, there was no fixed policy but in the long term, the company aims to give out dividends on an increasing quantum.
He also described UMW-OG's share price performance on the Bursa Malaysia as commendable, with a comfortable premium based on the current market situation.
As at mid-day, the counter jumped 32 sen above its IPO price at RM3.12, with 175.46 million shares transacted
Labuan unaffected by GST
LABUAN: Being a free-duty island, implementation of the Goods and Services Tax (GST) will not affect Labuan, says Association of Labuan Trust Companies chairman Datuk Chin Chee Kee.
"Although the national budget had some surprises for us, nevertheless Labuan will not be affected in any way. Labuan is a designated area and will be zero-rated.
"We can even claim back the GST that we've paid. We'll also see reduction in income tax which will leave additional disposal income for everyone, especially for people working and residing in Labuan," he said when speaking at a dinner here last night.
Chin said the increase in Real Property Gains Tax rate will see more affordable houses for the working class "as no one would like to speculate under such a high tax rate.
"Thus, it is now worth considering to work and stay in Labuan. Paying six per cent GST is a lot in the long run. Thus, working and staying in Labuan will save you a lot of money as there is no excise duty on cars, cigarettes and liquor and now no GST," he added.
The GST will be implemented on April 1, 2015
"Although the national budget had some surprises for us, nevertheless Labuan will not be affected in any way. Labuan is a designated area and will be zero-rated.
"We can even claim back the GST that we've paid. We'll also see reduction in income tax which will leave additional disposal income for everyone, especially for people working and residing in Labuan," he said when speaking at a dinner here last night.
Chin said the increase in Real Property Gains Tax rate will see more affordable houses for the working class "as no one would like to speculate under such a high tax rate.
"Thus, it is now worth considering to work and stay in Labuan. Paying six per cent GST is a lot in the long run. Thus, working and staying in Labuan will save you a lot of money as there is no excise duty on cars, cigarettes and liquor and now no GST," he added.
The GST will be implemented on April 1, 2015
Palm prices touch 1-year high
AKARTA: Malaysian palm oil futures briefly rose to a fresh one-year high on Friday, as strong Asian demand coupled with lower production expectations supported prices.
Both Malaysia and Indonesia, which account for the lion's share of global palm oil production, are entering their monsoon weather season, traders and analysts say, with output also likely to be dented by a lower production cycle as yields have eased from last year.
By mid-day, the benchmark January contract on the Bursa Malaysia Derivatives Exchange traded 0.2 per cent higher at RM2,599 per tonne.
Earlier, benchmark prices rose to RM2,603, its highest level since October 25, 2012, and have gained about seven per cent for the year to date.
"The market is holding very well," said a trader with a foreign commodities brokerage in Kuala Lumpur. "We are not going to have high production, due to wet weather conditions.
"The market still looks friendly so there is room to go higher," he said, adding that both Chinese and Indian demand remained strong. "If the market comes down, it will likely be due to profit taking."
Total traded volume stood at 16,574 lots of 25 tonnes each, above the usual 12,500 lots.
Technicals showed Malaysian palm oil's bullish target of RM2,630 per tonne remains unchanged, based on its wave pattern and a Fibonacci projection analysis, said Reuters market analyst Wang Tao.
"Demand should remain fairly stable in view of the upcoming festive events like Chinese New Year and rising biodiesel mandates in Indonesia," CIMB Analyst Ivy Ng said in a note.
"The improvement in CPO (crude palm oil) price could be sustained into early-2014."
In other markets, Brent futures rose above US$109 a barrel on expectations of steady demand growth as the manufacturing sector in China, the world's second-biggest oil consumer, expanded at its fastest pace in 18 months.
In competing vegetable oil markets, the US soyoil contract for December rose 0.4 per cent in early Asian trade. The most-active May soybean oil contract on the Dalian Commodities Exchange gained slightly
Both Malaysia and Indonesia, which account for the lion's share of global palm oil production, are entering their monsoon weather season, traders and analysts say, with output also likely to be dented by a lower production cycle as yields have eased from last year.
By mid-day, the benchmark January contract on the Bursa Malaysia Derivatives Exchange traded 0.2 per cent higher at RM2,599 per tonne.
Earlier, benchmark prices rose to RM2,603, its highest level since October 25, 2012, and have gained about seven per cent for the year to date.
"The market is holding very well," said a trader with a foreign commodities brokerage in Kuala Lumpur. "We are not going to have high production, due to wet weather conditions.
"The market still looks friendly so there is room to go higher," he said, adding that both Chinese and Indian demand remained strong. "If the market comes down, it will likely be due to profit taking."
Total traded volume stood at 16,574 lots of 25 tonnes each, above the usual 12,500 lots.
Technicals showed Malaysian palm oil's bullish target of RM2,630 per tonne remains unchanged, based on its wave pattern and a Fibonacci projection analysis, said Reuters market analyst Wang Tao.
"Demand should remain fairly stable in view of the upcoming festive events like Chinese New Year and rising biodiesel mandates in Indonesia," CIMB Analyst Ivy Ng said in a note.
"The improvement in CPO (crude palm oil) price could be sustained into early-2014."
In other markets, Brent futures rose above US$109 a barrel on expectations of steady demand growth as the manufacturing sector in China, the world's second-biggest oil consumer, expanded at its fastest pace in 18 months.
In competing vegetable oil markets, the US soyoil contract for December rose 0.4 per cent in early Asian trade. The most-active May soybean oil contract on the Dalian Commodities Exchange gained slightly
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