UMW O&G prices share sale at top end
KUALA LUMPUR: UMW Oil & Gas Corp Bhd, an offshore and drilling services firm, has raised about RM2.36 billion from its initial public offering (IPO), pricing it at the top of expectations, two sources said yesterday.
The strong demand for the country's largest IPO this year signalled a boost for Malaysia's capital market on pent-up demand for emerging market stocks.
This month, port operator Westports Holdings Bhd priced its US$680 million (RM2.1 billion) IPO at the top of its projected range.
UMW O&G, a unit of state conglomerate UMW Holdings Bhd, priced the offering at RM2.80 a share versus a tight indicative range of RM2.70-RM2.80, said the sources.
"It was oversubscribed by more than 50 times," one of the sources said, adding that the offer to institutional investors closed last Thursday, a week ahead of the originally scheduled date.
Its parent plans to take RM647.9 million of the proceeds to pay debt and finance capital expenditure, while UMW Oil & Gas will use the remaining RM1.7 billion to buy rigs, clear debts and pay listing expenses.
The company leaned heavily on cornerstone investors, from Fullerton Fund Management Co to FIL Investment Management, who accounted for 47.3 per cent of the total offer. Reuters
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