Gas Malaysia Bhd, the sole supplier of natural gas to the non-power sector is scheduled to be listed in Main Market of Bursa Malaysia on 11th June 2012.
The Initial Public Offering (IPO) consists of offer for sale of 333.84 million ordinary shares at an indicative price of RM2.20 per share at RM0.50 par value. The final price will be the lower of RM2.20 and institutional price.
Out of 333.8 million offer for sale shares, 303.3 million shares are for selected & institutional investors, while 30.5 million shares for application by Malaysian public eligible directors and employees of Gas Malaysia Berhad.
The offer for sale is expected to raise RM734.45 million. As the company did not issue any new shares for the IPO, there will be no proceeds from the IPO.
Gas Malaysia Bhd, part of an energy distributor linked to Malaysian billionaire Syed Mokhtar Al- Bukhary. Prior to the IPO, Gas Malaysia is 55 percent-owned by MMC-Shapadu (Holdings) Sdn Bhd, while Tokyo Gas-Mitsui & Co (Holdings) Sdn Bhd holds 25 percent and Petronas Gas Bhd owns the balance.
Gas Malaysia is the sole licensed seller of natural gas in Peninsular Malaysia for the non-power sector. Currently, Gas Malaysia supplies energy to over 700 industrial, 13,352 residential and 528 commercial customers throughout Peninsular Malaysia. They also has rights to supply liquefied petroleum gas in the region.
More information regarding the company can be found in Gas Malaysia webpage.
Gas Malaysia intends to pay 100 percent of profit after tax as a dividend for the financial year end December 2012. Based on At an IPO price of RM2.20 & 2011 figures, the dividend yield is 8.11% or 17.85 sen per share.
For the subsequent years, Gas Malaysia intends to pay at least 75 percent of profit after tax as a dividend. This translates to a dividend yield of 6.08% or 13.39 sen per share based on IPO price of RM2.20 & 2011 figures.
The table below is the financial summary for Gas Malaysia Bhd.
|FYE 2009||FYE 2010||FYE 2011|
|Profit after Tax (RM’000)||243,146||298,278||229,154|
|Earnings per Share (sen)||18.94||23.23||17.85|
|Price Earnings Ratio (x)||11.62||9.47||12.33|
Maybank Investment Bank is the principal adviser sole book runners while Maybank Investment Bank, Bank Muamalat & Kenanga Investment Bank is the joint underwriters of the IPO.
For those who are interested in Gas Malaysia IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 25th May 2012 at 5pm. Tentative balloting date is on 29th May while the allotment date is on 7th June 2012.
Gas Malaysia stock name in Bursa Malaysia is “GASMSIA”.
View Gas Malaysia prospectus in Bursa Malaysia webpage.
What do you think about Gas Malaysia IPO? Are you going to subscribe?