Bumi Armada Bhd, a leading international offshore oil field services contractor, is schedule to be listed in Main Market on 21st July 2011.
The Initial Public Offering (IPO) consists of 878.5 million ordinary shares at an IPO price of RM3.15 per share at RM0.20 par value.
Out of 878.5 million shares, 798.7 million shares are offered to Malaysian and foreign institutional and selected investors and a retail offering of 79.86 million shares to the Malaysian public and directors & employees of Bumi Armada Berhad.
Bumi Armada was privatised in 2003 by T. Ananda Krishnan. Re listing plan in 2008 was delayed due to the global financial crisis.
The IPO has attracted seven cornerstone investors, including Malaysia’s state investment fund Permodalan Nasional Bhd and Prudential Fund Management Bhd, which have pledged to invest about US$309 million (RM945.54 million).
Bumi Armada is an offshore oil support specialist, and is the only Malaysian company that owns floating production storage and offloading vessels
Based on at the number of FPSO (floating production, storage and offloading) vessels it operates, Bumi Armada is now number eight in the world ranking. With the new FPSO that is going to start operation in August, Bumi Armada would make it number six in the ranking.
More information regarding the company can be found in Bumi Armada webpage.
For the time being, Bumi Armada, does not have any fixed dividend policy.
The table below is financial summary for Bumi Armada Bhd.
| FYE 2008 | FYE 2009 | FYE 2010 | |
|---|---|---|---|
| Revenue (RM’000) | 519,839 | 732,090 | 1,241,383 |
| Profit after Tax (RM’000) | 150,023 | 277,442 | 350,755 |
| Earnings per Share (sen)* | 5.12 | 9.47 | 11.98 |
| Price Earnings Ratio (x)* | 61.49 | 33.25 | 26.30 |
* Based on number of shares post IPO
CIMB, Maybank and RHB Bank is the joint principal sole adviser of the IPO.
For those who are interested in Bumi Armada IPO, you may subscribed at ATM machines or via Internet Banking. The subscription period is opened until 7th July 2011 at 5pm. Tentative balloting date is on 11th July while allotment date is on 19th July 2011.
Bumi Armada Berhad stock name in Bursa Malaysia is “ARMADA”.
View Bumi Armada prospectus in Bursa Malaysia webpage.
What do you think about Bumi Armada IPO? Are you going to subscribe?
Re-listing company, wishing to apply but still have the concerns.What do you think?
I wanted to apply too but looking at the PE Ratio, seem on high side.
May apply but using the same strategy, sell on first day.
How much do we expect to get the first day premium? how much is fair prioe?
rusdi, I will post the fair value/target price when I get the information.
A few of IPOs popping up recently, may I know why?
insane, I guess they want to launched it before the end of 1H2011.
If you going to apply for IPO via internet banking, please do not use CIMBClicks to apply. The money for unsuccessful applicants will only 2-3 days after balloting as compared to Maybank only 1 day. The IPO money will use to generate interest in the money market at your cost.
Backing by many cornerstone investors, bumi armada seems to be a good ipo to apply for. But rm 3.15 is a bit expensive for this ipo. Noted also bumi armada does not have any fixed dividend policy at the momment. BTW, can you comment on company liabilities and D/E ratio?
Apply via Internet,
Yes, I agree with you. I’m always applying from CIMBClicks. It takes longer time to get the money back. Somebody need to make complain on this.
kingjoke,
Yes, they have connerstone is good but it does not guarantee the price will maintain. Look at UOADEV, they have EPF as connerstone, but the price still drop. However, Bumi Armada have many connerstone when compare with UOADEV.
From their prospectus, Gearing ratio is about 0.65 post IPO.
There are different opinion about this counter. however fair value prices of other IPOs obtained from this website are not far off. Can you tell what is the fair value of this counter? thank you to this blog
Wasil, I will post when the information become available.
Why Bumi Armada PE quite high ? My strategy will sell at the first day if got la. ROE for last 3 years more than 15%
this company get many goverment project. Can we use this indicator to buy before election this year.
what your opinion about this stock?
I have few question here:
1) How to apply through ATM?
2) Which ATM machine can be use? As i know Hong Leong ATM cannot be use…I try it before.
2) What is the fee to apply IPO through ATM? If i use CIMB ATM card to apply how much does it cost? or if i use CIMB ATM card at Maybank ATM machine how much will it cost? I don’t like to apply through CIMB online because it cost me RM2.50 to apply.
As i know Hong Leong bank target price is RM3.30 so i think it is worth it to try. Please for those who had experience on applying IPO through ATM please share it with me. Thank you very much in advance. My e-mail address is [email protected]
I don’t think apply through ATM is difficult but I never try myself. Regarding the fee, I think it is very much similar with internet banking. Also, I think you can’t apply using CIMB ATM at Maybank ATM.
Fair Value/ Target Price for Bumi Armada
Hong Leong – RM3.30, based on PE 17.6x for 2012
HwangDBS – RM4.05
MIDF – RM3.62
OSK – RM3.65
TA – RM3.29
Latest news
1. Bumi Armada Bhd received orders for about 25 times the stock it’s selling to institutional investors
2. Bumi Armada Bhd can achieve a three-year earnings compound annual growth rate (CAGR) of 23 per cent over the financial years 2011-2013
Wow… Seem worth to invest, but price was too high cant put much bullet.
Got a phone call from my mate in Hong Leong,they purposely forecast the fair value lower in order to get more shares from panic selling investors..
hong leong want to collect for who.. sorry i really dont get it.
Bumi Armada Bhd, sold shares to institutional investors at RM3.03.
who is the market stabiliser for bumi armada.. like Petronas chemical before CIMB become a market stabiliser
Any latest news on Armada before listing?
I think in this industry Armada is worth to apply or invest when it is listing in BSKL.but be care4 coz the armada has high debt, plus use ipo to settle all debt, so the price will not jump too high. but still value t buy. but in this market segment+high debt i think 1st day 3.35 (day high 3.50)….so good luck for all investor….don’t be tamak, use CONTRA, maybe u will loss big money…see n attack….