Armada Berhad IPO Listing on Thursday on Bursa Malaysia

Bumi Armada Berhad’s initial public offering(IPO) is set to en route to a listing on the Main Market of Bursa Malaysia this Thursday(21/07/2011).

Malaysian FPSO operator, Bumi Armada, will be the Country biggest initial public offering(IPO) and second largest in South East Asia for this year.

This IPO was  has been oversubscribed by 9.5 times for retail portion where it received 57,941 applications for 614.632 million shares for its public tranche of 58.569 million shares. 

Where as  for  institutional portion, has been oversubscribed by 50 times. This show a strong demand from investors and so expect the price to run.

Bumi Armada is Malaysia’s largest owner and operator of OSVs (and third largest in South East Asia), and is currently also the eighth largest FPSO player in the world. The company is an established and trusted service partner in the oil and gas industry with over decades of experience.

Bumi Armada would be the second company that Malaysian tycoon and billionaire,  Ananda Krishnan,   has taken private and re-listed in Bursa Malaysia after Maxis berhad

The retail, institutional, cornerstone and Ministry of International Trade and Industry (MITI) tranches of the IPO were priced at RM3.03 per share. In this Country biggest initial public offering(IPO) exercise, it set to raise RM2.66 Billion.

Bumi Armada operates in more than 10 countries in Asia, Africa and Latin America and gave investor plenty of oversea exposure in oil & gas(O&G). The overseas operation bring about 84% of the total revenue.

Hwang DBS value the stock at RM4.05 based on 22 times its projected FY2012 EPS 19 sen and MIDF set a target of RM3.62 based on 20.4 times FY2012. OSK value the stock at RM3.65 based on 18 times its projected FY2012 EPS  

There are abundance of initial public offering(IPO) in Malaysia and gave investors plenty of choice.

This week alone there will be 3 initial public offering(IPO):

1) Inari Berhad-Listing on  19/07/2011 in ACE Market  and oversubscribed by 10.42  times

2) Bumi Armada Berhad-Listing on  21/07/2011 and oversubscribed by 9.5 times

3) Catcha Media Berhad-Listing on  22/07/2011 in ACE Market  and oversubscribed by 10.7 times

There will be another 3 new initial public offering(IPO) next week. So far there are 19 IPO which include 7 counters in ACE Market, this year.

For last year, there were 29 initial public offering(IPO)

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