Oil & Gas Sector

Hibiscus Petroleum IPO Oversubscribed by 3.80 times

Hibiscus Petroleum Berhad

Hibiscus Petroleum Berhad Initial Public Offering (IPO) received an good response with its public portion of 10 million shares. It was oversubscribed by 3.80 times. The IPO attract 4,757 applications or 48.2 million shares.

However, only 265.4 million out of 400 million were being place out by way of placement to selected investors. In other word, it was under subscribed.

Under the clawback provision set out in prospectus, 38.2 million from private placement portion transferred to retail portion. As such, 48.2 million shares were made available for retail portion and all retails applicants will received the exact number of shares that they apply.

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ECMLibra Oil & Gas Sector Stock Picks, Jul 2011


ECMLibra Investment Research continue to be Overweight on the sector as news flow continue to be strong. But ECMLibra see that bigger caps like MMHE and even SapuraCrest hitting peak cycle valuations.

As such, ECMLibra pay more attention to small cap laggards like Wah Seong, Alam Maritim and even Perdana Petroleum. The only big cap ECMLibra favour now is Petronas Gas due to the upside potential from the new re-gasification terminal.

Selected Oil & Gas Stocks Fair Value, Target Price & Dividend Yield

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Bumi Armada IPO Oversubscribed by 9.50 times

Bumi Armada Berhad

Bumi Armada Berhad Initial Public Offering (IPO) received an overwhelming response with its public portion of 58.6 million shares. It was oversubscribed by 9.50 times. The IPO attract 57,941 applications or 614.6 million shares.

The institutional IPO prices was fixed at RM3.03 per share. Accordingly, the final retail price was fixed at RM3.03 per shares. The refund of RM0.12 per share will be send to successful retail applicants by 10 market days.

29.3 million shares were allocated for Bumiputera category while 29.3 million shares were allocated for Malaysian Public category. Below are the allotment summary for public portion.

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Deleum, Dividend Yield & Fair Value/Target Price

Deleum Berhad

Deleum Berhad (5132), is a provider of a diverse range of supporting specialized products and services for the oil and gas industry, particularly the exploration and production of oil and gas. Deleum participation in oil and gas industry was dated since 1982.

Three largest shareholders of Deleum are Lantas Mutiara Sdn Bhd, Hartapac Sdn Bhd and Datuk Vivekananthan with total holdings of more than 40 percent.

Deleum is known pay attractive dividend to the shareholders. For the past 3 years the dividend yield stays above 6% which is about 2 times of the current fixed deposit rate.

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OSK Top 5 Stock Picks for Jul 2011

Malaysia already one of the world’s stronger performers so far in 2011. OSK believe the good run will continue in July and hence advocate the sectors linked to the ETP, namely Banks, Construction, Property and O&G, as investment ideas for the month.

OSK also continue to see the local market climb towards year-end target of 1680 pts, although the 1600-pt psychological resistance might be difficult to break before Budget 2012 which to be unveiled on 7 Oct.

For July, OSK top picks are from Banking, Construction, Property, Oil & Gas and Steel

The table below are the target price for OSK’s July 2011 top picks.

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