UMW Oil & Gas Starts Investor Education for $746 Million IPOJoyce Koh and Fox Hu
UMW Oil & Gas Corp. started investor education for its initial public offering that may be Malaysia’s biggest this year.
The IPO may raise as much 2.36 billion ringgit ($746 million) with 843.2 million new and existing shares offered at as much as 2.80 ringgit each, according to a term sheet. The company, a unit of UMW Holdings Bhd., plans to start trading on Kuala Lumpur’s stock exchange on Nov. 1.
At $746 million, UMW Oil & Gas’ planned sale will be larger than Westports Malaysia Sdn., whose shareholders including Li Ka-Shing’s Hutchison Port Holdings Ltd. are seeking as much as 2.03 billion ringgit in the company’s IPO. First-time offers have raised $1.1 billion this year in Kuala Lumpur, down from $5.3 billion in the same period in 2012, according to data compiled by Bloomberg.
UMW Holdings’ Chairman Asmat Kamaludin said in June that a separate listing would allow the unit to raise funds easier as the oil and gas industry is capital intensive.
UMW Oil & Gas, which manufactures oil pipes and provides services including offshore drilling and pipe-coating, is selling 611.8 million new shares in the IPO to raise about 1.7 billion ringgit for itself, which it would use to buy and maintain rigs, upgrade machinery and pay debt to its parent, according to the document.
Malayan Banking Bhd., CIMB Group Holdings Bhd., Credit Suisse Group AG and Goldman Sachs Group Inc. are the joint global coordinators for the offer.
Westports, the main terminal operator at Malaysia’s Port Klang, is offering shares at between 2.30 ringgit and 2.50 ringgit, a separate term sheet obtained by Bloomberg News showed today. Cornerstone investors include AIA Bhd., Malaysia’s Employees Provident Fund and Permodalan Nasional Bhd., according to the document.