3 Most Wanted IPOs in 2012

The year 2011 almost reaches its end with 4 big IPOs listed in Bursa Malaysia. These IPOs were MSM Malaysia, Bumi Armada, UOA Development, and Pavilion REIT.

MSM Malaysia & Bumi Armada IPO were performing very well since listing. On the other hand, UOA Development performed badly with the current price almost half of the listing price. Performance of Pavilion REIT IPO remained to be seen when it will be listed on 7th December.

In 2012, there will be 3 most-wanted IPOs namely, Felda Global Ventures Holdings, Integrated Healthcare Holdings (IHH) and Gas Malaysia. Probably, there will be more big IPO in 2012 but no details are currently available.

Felda Global Ventures Holdings

Felda Global is the commercial arm of the Federal Land Development Authority (Felda), the world’s largest estate owner. The company business focused on palm oil, rubber and sugar cane processing and cultivation.

Felda has been tasked to help rural settlers to develop plantations of agricultural commodities such as oil palm and rubber.

The company also has businesses in the U.S., Canada, Australia, China, Pakistan, Sri Lanka and South Africa. In June 2011, Felda Global listed its sugar unit MSM Malaysia Holdings Bhd in Bursa Malaysia.

Felda Global will have about 880,000 ha of plantation land. However, only 350,000 ha of plantation land will be included in the IPO. The remaining half-million ha is belonging to the settlers’ cooperative in the IPO.

The IPO would raise approximately RM5 billion to RM6 billion ringgit (US$1.6-US$1.9 billion). Proceeds from the IPO will go towards expanding its core businesses.

Integrated Healthcare Holdings (IHH)

Integrated Healthcare Holdings is controlled by Malaysia’s state investor Khazanah Nasional Bhd, which owns 70 percent stake of the company. The remaining 30 percent stakes are belonged to Mitsui & Co, Japan’s second biggest trading company.

Mitsui & Co purchase the 30 percent stake from Khazanah Nasional in April 2011 for RM3.3bil

The listed IHH would have assets of Singapore’s Parkway Holdings as well as Khazanah’s stakes in Pantai Hospitals and the International Medical University in Malaysia. The IPO will also include Turkish hospital chain.

In June 2010, Integrated Healthcare offered S$3.5bil (RM8.6bil) for the rest of Singapore’s Parkway Holdings Ltd, beating a rival bid fromFortis Healthcare Ltd.

Currently, Integrated Healthcare was in advanced talks to buy a majority stake in Turkey’s Acibadem Saglik Hizmetleri & Ticaret AS for about US$1billion.

IHH also has an investment in India Apollo Hospitals.

IHH is expected to be listed in Bursa Malaysia in 2H2012. The IPO will raise about US$2.0 billion (RM6.3 billion).

Gas Malaysia

MMC Corp Bhd, the flagship company of Tan Sri Syed Mokhtar al-Bukhary, plans to list Gas Malaysia Sdn Bhd on the Main Board of Bursa Malaysia in 1Q2012. Previously, the IPO was postponed a few times.

Gas Malaysia is the country’s sole supplier of natural gas to the non-power sector.

MMC-Shapadu holds 55 percent stake in Gas Malaysia. The remaining 45 percent stake, held by Tokyo Gas-Mitsui & Co (Holdings) Sdn Bhd and Petronas Gas Bhd with 25 and 20 percent stake, respectively. Petroliam Nasional Bhd also has a golden share in Gas Malaysia.

Upon listing, MMC’s effective stake in Gas Malaysia will be diluted to 30.9 percent from 41.8 percent.

Gas Malaysia Bhd unit may sell shares at RM2.20 a piece. The total net proceeds is estimated at RM300.9 million.