Petronas Chemicals Group To Be Listed Today

Petronas Chemicals Group Bhd expected to have a strong debut when listed today at Bursa Malaysia Securities.

This initial public offering (IPO) would be the largest in Southeast Asia and will  set to outshine other big-capitalised firms on Bursa Malaysia Securities.

I would expect it’ll open between a  range between RM5.60 and RM5.80 on its first day of trade. Maybank IB Research believes the share prices for Petronas Chemicals Group Bhd (PCG), worth between RM6.64 and RM6.70 per share, using discounted cash flow and price earning ratio (PER) valuation metrics.

The retail investors paid RM5.04 per share while institutional investors paid RM5.20 per share under this  Petronas Chemicals’ initial public offering (IPO).

Petronas Chemicals Group Bhd is involved primarily in manufacturing, marketing and selling a diversified range of petrochemical products, including olefins, polymers, fertilisers, methanol and other basic chemicals and derivative products. It consist a group of 22 companies involved in the production of diversified chemical products

Company Name: Petronas Chemicals Group Berhad

Principal  Adviser :  CIMB Investment Bank Berhad

Listing Date : 26 November 2010

Market Sector : Industrial Products

Short Name :  PCHEM

Stock Code:  5183

CIMB Investment Bank Bhd, the principal adviser and managing underwriter, has been designated as the so-called stabilising manager for the IPO and would carry out its mandate to keep the stock stable for a maximum of 30 days post listing.

The principal adviser will buy up to 372 million shares in the company from the open market to stabilise the stock post listing.

Therefore, do expect the Petronas Chemicals Group Bhd’s stock price to be not volatile moving.

On today  as well, Petronas Chemicals Group will be added to the FTSE Bursa Malaysia KLCI with a shares in issue total of 8,000,000,000 and an investabilty weighting of 30%.  At the same time,  Berjaya Sports Toto as Berjaya Sports Toto (Malaysia, Constituent) (1562, 6331566) will be deleted from this  index.

3 Responses to “Petronas Chemicals Group To Be Listed Today”

  1. Positive debut for Petronas Chemicals

    KUALA LUMPUR: Shares of Petronas Chemicals Group Bhd closed at RM5.31 on the stock’s debut as South-East Asia’s largest initial public offer (IPO) on the Main Market yesterday, 11 sen higher than its IPO price of RM5.20 per share.

    It was the most active on the stock exchange yesterday with a total of 637 million shares changing hands, pushing the trading value of Bursa Malaysia to RM4.73bil, the highest this year after reaching RM2.35bil on Nov 12.

    Based on its closing price, Petronas Chemicals’ market capitalisation is now RM42.48bil.

    The counter opened at RM5.71, registering a premium of 51 sen per share.

    The group is Petroliam Nasional Bhd’s (Petronas) second wholly-owned unit to be listed this year, following last month’s listing of heavy engineering unit Malaysia Marine and Heavy Engineering Holdings Bhd.

    Petronas Chemicals will be included as a constituent of the FBM KLCI on Monday.

    Speaking at a press conference after the listing yesterday, non-executive director Datuk George Ratilal said the group was very satisfied with the opening price.

    It is an excellent price, opening almost 10% above the IPO price, he said, adding that the group expected to raise RM12.8bil from the listing and part of the proceeds would be used for working capital and capital expansion.

    Asked if there would be more capital raising from the group, non-independent non-executive chairman Datuk Wan Zulkiflee Wan Ariffin said there was currently no plan to do that.

    Our balance sheet is still very strong and more than adequate for our business strategies in the next few years, he said.

    Going forward, he said, the group was very bullish and excited with the business as the industry was heading into an up-cycle phase.

    We will increase utilisation of our plants going forward and will look for new opportunities. Having said this, we are targeting to reach more than 90% utilisation for the plants in 2011 from the current 80%, he said.

  2. Petronas Chemicals Q2 net profit down 8.9%

    PETALING JAYA: Petronas Chemicals Group Bhd registered a net profit of RM503mil for the second quarter ended Sept 30, 8.9% lower than RM552mil in the same period last year due to lower operating profit.

    In a filing with Bursa Malaysia, Petronas Chemicals said its operating profit fell to RM572mil from RM814mil in the corresponding quarter last year.

    Operating profit in the corresponding quarter included a once-off negative goodwill of RM175mil arising from the acquisition of Optimal Glycols (M) Sdn Bhd. In addition, the consolidation of Optimal Glycols and Optimal Chemicals (M) Sdn Bhd resulted in higher amortisation and depreciation expense by RM75mil in the current quarter, it said.

    It said the above factors resulted in lower operating profit and contributed to a lower profit.

    The group’s revenue rose 10% to RM3.17bil from RM2.88bil in the previous corresponding period, driven by higher realised prices for most products as demand increased on the back of improved market condition.

    This is further supported by higher sales volume with improved plant utilisation and additional volume contribution from acquisition of Optimal Chemicals in September last year, it said.

    Its net profit for the first six months was RM1.19bil, up from RM980mil in the same period last year, supported by share of profits of associates and jointly controlled entities increasing by RM212mil, mainly due to an increase of profits in BASF Petronas Chemicals.

    It registered higher revenue of RM6.3bil in the first six months, compa red with RM5.2bil.

  3. +ve debut but not a good one for a newly listed companies. I am sure during our parents or grandparents time, whenever a newly listed company listed on the board, the return will be magnificent.

    So the ROI for Petronas Chemicals is nothing to shout about from my point of view.