Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Westports Advances in $644 Million Kuala Lumpur IPO Debut

Oct. 18 (Bloomberg) -- Westports Holdings Bhd., part-owned by billionaire Li Ka-Shing’s Hutchison Port Holdings, surged on its Kuala Lumpur debut after completing Malaysia’s second-largest share sale this year.

Shares of the terminal operator gained 6 percent to close at 2.65 ringgit. The stock was the most active on the Kuala Lumpur bourse with 202.6 million shares traded. The company priced its shares for institutions at 2.50 ringgit each, the top end of its marketed range.

Westports operates facilities at Malaysia’s Port Klang, one of the main hubs serving container traffic along the Straits of Malacca, which links Asia with the Middle East and Europe. The company has a 69 percent market share of container volume at the port, with six terminals and potential to build another three, according to its website.

“This company is like a utility company, where the business and profit are quite secure,” Choo Swee Kee, who oversees 700 million ringgit as chief investment officer at TA Investment Management Bhd. in Kuala Lumpur, said by phone today. Choo didn’t subscribe to Westports shares.

The company’s IPO raised 2.03 billion ringgit ($644 million), making it Malaysia’s second-biggest this year, data compiled by Bloomberg show. UMW Oil & Gas Corp.’s share sale raised 2.36 billion ringgit this month.

Westports, whose biggest shareholder is local billionaire G. Gnanalingam, has a fair value of 2.90 ringgit, K&N Kenanga Holdings Bhd. said in an Oct. 16 report, advising investors to accumulate shares given its projected “decent” dividend yield of 3.5 percent in 2014.

To contact the reporter on this story: Barry Porter in Kuala Lumpur at bporter10@bloomberg.net; Chong Pooi Koon in Kuala Lumpur at pchong17@bloomberg.net

To contact the editor responsible for this story: Michael Patterson in Hong Kong at mpatterson10@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.