UMW Oil & Gas Corporation Berhad IPO

UMW Oil & GasUMW Oil & Gas Corporation Bhd, a Malaysian offshore and drilling services, is scheduled to be listed in Main Market of Bursa Malaysia on 1st November 2013. This IPO set to be the biggest in Malaysia this year.

The Initial Public Offering (IPO) consists of 843.18 million shares, comprising of an offer for sale of up to 231.38 million existing shares and a public issue of 611.80 million new shares. The retail offering portion involve 194.58 million shares would be for eligible directors and staff  and Malaysian public.

The retail price of the offering is RM2.80 per share at RM0.50 par value. The final retail price will be determine through book building exercise. If the final retail price is less than the retail price, there will be a refund to the retail investors.

The IPO will raise about RM1.71 billion in proceeds. The proceed will be used for capital expenditure (59.4 %), mobilizations and demobilization costs (2.9%), repayment of borrowing (34.9%) and fees & listing  ewxpenses (2.8%).

UMW Oil & Gas, the oil-field services arm of state-backed conglomerate UMW Holdings Bhd. The company involves in the upstream sector of the O&G industry, providing offshore drilling and oilfield services, including engineering and maintenance services.

It also acts as an agent in Malaysia for international companies providing specialized drilling equipment and services.

Internal information said that there is up to 17 cornerstone investors have been recruited by UMW Oil & Gas, taking up 61% of the total institutional tranche. The investors include Fidelity Investments, Hwang Investment, Fullerton Fund and Malaysian state-owned funds such as the Employee Provident Fund. These investors must hold the shares for a fixed period, helping to reduce risk of a sharp plunge on listing day.

More information regarding the company can be found in UMW Oil & Gas webpage.

Currently, UMW Oil & Gas  does not have any fixed dividend policy.

The table below is the financial summary for UMW Oil & Gas Corporation Bhd.

FYE 2010 FYE 2011 FYE 2012 6 mth ended 30th Jun 2012  6 mth ended 30th Jun 2013
Revenue (RM’000)  348,811  550,271  724,336  383,353  325,280
Profit after Tax (RM’000)  (47,650)  79,160  71,858  47,972  88,852
Earnings per Share (sen)*  (2.20)  3.66  3.32 4.44**  8.22**
Price Earnings Ratio (x)*  76.47  84.24 63.10**  34.07**

* Based on number of shares post IPO
** Annualized

Maybank Investment Bank and CIMB Investment Bank is the joint principal adviser, managing underwriter for the IPO.

For those who are interested in UMW Oil & Gas Corporation IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 14th October 2013 at 5pm. Tentative balloting date is on 18th October 2013 while the allotment date is on 30th October 2013.

UMW Oil & Gas Corporations stock name in Bursa Malaysia is “UMWOG”.

View UMW Oil & Gas Corporation prospectus in Bursa Malaysia webpage.

What do you think about UMW Oil & Gas Corporation IPO? Are you going to subscribe?

9 comments… add one
  • 1.

    katakan saya berminat, nak beli melalui mesin ATM, bank ape yang biasanya boleh buat urusan ni?? bank tertentu (cth: Maybank/CIMB) atau semua bank???

    saya kurang paham tentang jumalah 1 lot bagi setiap unit, adakah 1 Lot bersamaan 1000 unit @ 1 Lot bersamaan 100 unit?? berapa pula jumlah minimum kita boleh mohon??

    sekiranya gagal, bagaimana duit tersebut akan (refund) kembali?? melalui cek @ Electronic Transfer??

    terima kasih berkongsi maklumat tentang permohonan IPO..

  • 1. kebanyakan bank provide service ni as long as ada cds account anda registered kt dlm system bank tu. ada fee sikit, klu transfer dari savings acc cimb ke cds acc di cimb investment, fee cuma $2, klu savings acc cimb, cds acc investment bank lain $2.50
    2. dulu 1 lot 1000 unit, utk galakkan retail investor, govt tukar ke 1 lot 100 unit tp investor usually still guna 1 lot 1000 unit lg
    3. jika ada yg no. 1 kat atas, jika subscription gagal, automatic fund akan refund balik terus ke savings acc cimb lps tolak fee tu.

  • Latest News – The institutional offer of UMW Oil & Gas Corp Bhd’s $740 million initial share sale in Malaysia has been oversubscribed by more than ten times.

  • worth to apply this ?
    Please advise on this.

    • Base on previous year financial record, the IPO is a bit expensive but I read somewhere that the earning should be better for 2013 & beyond & the PE will be the same or better with other company in the same industry. If it come out to be true, then the IPO will be good.

      • Thanks for the advise. 😉

  • PE too high..

  • Target Price / Fair Value for UMW Oil & Gas

    CIMB – RM3.10
    Hong Leong – RM3.36
    HWangDBS – RM3.20
    Kenanga – RM3.33
    M&A Securities – RM3.10
    Public Bank – RM3.03
    SJ Securities – RM 3.10
    TA Securities – RM3.36

  • For rig businesses usually long term contract. So upside is steady stream income. Downside is if the daily rate go up, difficult to change contract. Exploration and Production wise according to Wood MacKenzie globally the spenditure will be flat not growth of 10-15% Capex by oil companies. Nevertherless there will frontier of deep watet exploration such as Indonesia. If UMW is using the proceed to venture into deepwater drillship, might more upside there. According to report by Maybank KE, positive in oil and gas sector for Malaysia. I believe it will be ok similar to westport. But this coming budget might have local effects. It depends alao in progress of marginal/ small fields Risk Contract in Malaysia


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