PETRONAS Chemicals Group Bhd Initial Public Offer Was Oversubscribed By Ten Times | PCG IPO
As expected, the PETRONAS Chemicals Group Bhd(PCG) Initial Public Offer(IPO) Was Oversubscribed By 10 Times.
I am totally Not surprise with this!
The Final Retail Price has not been determine yet pending official announcement is made.
By looking at this Oversubscription rate, I do expect it’ll be fixed at the top end of the offering range of RM4.50 ringgit to RM5.20.
This Initial Public Offer(IPO) will be the biggest in South East Asia for 2010 which expected to raise capital of between $3.7 billion and $4.2 billion from its offering of 2.48 billion shares with retail shares offered at RM5.05.
Let us wait for this interesting IPO which would be Malaysia’s biggest IPO on record so far.
Last month, Malaysia Marine & Heavy Engineering Holdings Bhd., the Kuala Lumpur-based rig-building arm of Petronas’s MISC Bhd., raised about 2 billion ringgit.
Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) which were oversubscribed 27.7 times the number of shares they were allocated for its institutional offering.
The FTSE Bursa Malaysia KL Composite Index hit a new record high at 1,531.99 on 10 November 2010 and therefore heads into uncharted territory by rising to 19 percent this year. Some of the oil and gas stock have been started active traded in Bursa Malaysia recently.
This show there is a lot of demand of Malaysian’s shares, the foreign investor confident has returned and a lot of money heading into Asia stock market.
It is also a good indicator since the government has eased rules last year that forced publicly traded companies to set aside 30 percent of their equity to ethnic Malays who form the majority of the population.
This IPO was manage by CIMB Group Holdings Bhd., Deutsche Bank AG and Morgan Stanley. For the portion of the sale to institutional investors, the co-bookrunners were Citigroup Inc. and UBS AG.
The joint underwriters for the retail offering are Affin Investment Bank Bhd, HwangDBS Investment Bank, Alliance Investment Bank Bhd, KAF Investment Ban Bhd, OSK Investment Bank Bhd, AmInvestment Bank Bhd, Maybank Investment Bank Bhd, Public Investment Bank Bhd, ECM Libra Investment Bank Bhd, MIDF Amanah Investment Bank Bhd, RHB Investment Bank Bhd, Hong Leong Investment Bank Bhd and MIMB Investment Bank Bhd.
The two Malaysia’s state-controlled retirement funds, The Employees Provident Fund and Kumpulan Wang Persaraan (Diperbadankan) has taken 18 percent of the offering as strategic investors. Therefore, it’ll be one of the core portfolio share holding.
It’s reported PCG would be a component of the Kuala Lumpur Composite Index (KLCI).
Latest Official Update:
Malaysia’s Petronas Chemicals IPO (PCGB.KL) has been priced at RM5.20 ($1.67) per share for institutionals and RM5.04 ($1.62) for retailers,
Petronas Chem may join FBM KLCI
Petronas Chemicals Group Bhd, a unit of Malaysia’s state oil company, may replace gaming company Berjaya Sports Toto Bhd in the country’s benchmark stock index after its listing on November 26, HwangDBS Vickers Research Sdn Bhd said.
Petronas Chemicals may potentially be the fifth largest constituent by full market capitalization of an estimated RM40 billion after its initial public offer, analyst Goh Yin Foo said in a report today. — Bloomberg
Petronas Chemicals sets IPO price at RM5.04
KUALA LUMPUR: Petronas Chemicals Group Bhd has fixed the price of its initial public offering (IPO) at RM5.04 a share for the portion reserved for retail investors and at RM5.20 apiece for shares to be sold to institutional investors.
The IPO would raise RM12.8bil, of which RM9.2bil was to be accrued to parent company Petroliam Nasional Bhd (Petronas), the company said in a statement yesterday.
Based on the institutional price, Petronas Chemicals’ market value will be RM41.6bil, making it one of the largest petrochemical producers in South-East Asia.
Petronas Chemicals will be a component stock of the FTSE Bursa Malaysia KL Composite Index.
“We are delighted with the investors’ response to the offering. We have had very engaging interactions with investors and the bookbuilding exercise has attracted significant interest from various types of investors globally,” Petronas Chemicals chairman Datuk Wan Zulkiflee Wan Ariffin said.
The Employees Provident Fund and Retirement Fund Inc have subscribed an aggregate of 445 million shares, or 5.6% of Petronas Chemicals.
Petronas Chemicals’ IPO is the largest share sale exercise in South-East Asia to date. CIMB Investment Bank Bhd acted as the principal adviser for the IPO.
Deutsche Bank AG, Hong Kong branch and Morgan Stanley & Co International plc acted as joint global co-cordinators and joint bookrunner for the institutional offering.
Petronas Chemicals is scheduled for listing on Bursa Malaysia on Nov 26.
It is the second Petronas-owned unit to have a public offering this year, following the listing of the group’s heavy engineering unit Malaysia Marine and Heavy Engineering Holdings Bhd last month.
Meanwhile, a Malaysian Issuing House Sdn Bhd statement said the 160 million shares for public subscription attracted 78,613 applications for 636.092 million shares, representing an oversubscription of 2.98 times.
In separate announcement to Bursa Malaysia yesterday, CIMB said it may buy up to 372 million shares in Petronas Chemicals from the open market to stabilise the stock post listing.
CIMB has been designated as the so-called “stabilising manager” for the IPO under section 9(1) of the capital market and service (price stabilisation mechanism) Regulation 2008.
It will carry out its mandate to keep the stock stable for a maximum of 30 days post listing.
fr:biz.thestar.com.my/news/story.asp?file=/2010/11/13/business/7420933&sec=business