Petronas Chemicals Group (PCG) has received orders for about 21 times the shares available in its RM12.8 billion initial public offering (IPO) for institutional offering. The retail offering of 293 million shares was oversubscribed by 2.5 times.
Shares were priced at RM5.20 each for institutions while individual investors get 3 percent discount at RM5.05. Demand for the shares exceededing the supply, with the institutional offering attracting orders for about RM92.6 billion worth of shares. The IPO values Petronas Chemicals at RM38.8 billion, or 16.3 times profit, a 38 percent premium to the industry median.
Petronas Chemical Group’s IPO is one of two offerings to be launched by government-run Petronas in response to Prime Minister Najib Razak’s call to reduce state ownership in the private sector and boost liquidity in the stock market when unveiling NEM early this year.
Petronas has filed a draft prospectus for an initial public offering (“IPO”) of its entire petrochemicals business. The new entity, Petronas Chemical Group Berhad (“PCGB”) is formed by merging of 22 Petronas wholly owned or majority owned subsidiaries. PCGB has total assets of about RM27 billion as of March 2010.
Petronas Chemical Group’s IPO will be the country’s second largest IPO after Maxis Communication Berhad. PCGB is expected to be listed next month
The draft prospectus on the Securities Commission website did not state how much PCGB is seeking to raise but banking sources have put the value of the firm at over $2 billion (RM 6.2 billion).
In his speech unveiling the NEM, the PM also touched on the need for greater public-private cooperation. With these, it help to promote competition across and within sectors to revive private investment and market dynamism.
The following are the list of Petronas and Ministry of Finance (MOF) subsidiaries which going to be privitized.
Although the PM did not identify the subsidiaries to be listed, there are rumors that the 2 subsidiaries could be Petronas Carigali Sdn Bhd, a 100% subsidiary of Petronas and Malaysia LNG Sdn Bhd, a 90% subsidiary.
Petronas Carigali Sdn Bhd
Petronas Carigali is involved in both O&G exploration and production activities. Incorporated in 1978, it is the exploration and production arm of Petronas.
I believe everybody is aware about the New Economic Model (NEM) which was announced by our prime minnister a few days ago which aim to bring Malaysia to high income nation in 10 years time.
However, what interest me more is the news on Government and EPF to jointly develop 3000 acres of land in Sungei Buloh into a new hub for the Klang Valley. If is it true then the property price around the area may increase. This is a good news for property investor.
But, where is the exact location?