UMW plans to list O&G unit on Main Market

by **hlk** Fri 17 May 2013, 08:19

PETALING JAYA: UMW Holdings Bhd has proposed to list its oil and gas (O&G) unit, UMW Oil & Gas Corp Bhd (UMW-OG), on Bursa Malaysia's Main Market.
The
proposed initial public offering (IPO) is for up to 843.18 million
shares of 50 sen each in UMW-OG. A total of 611.8 million shares will
be made available to retail and institutional investors. The
institutional offering involves the offer of up to 648.6 million
shares, representing 30% of the enlarged issued and paid-up share
capital of UMW-OG. The price of the institutional offer will be
determined by a book-building exercise.
Meanwhile, 194.58
million IPO shares will be made available for retail investors at a
yet-to-be-determined price, representing 9% of the enlarged issued and
paid-up share capital of UMW-OG.
UMW-OG is involved in the
upstream sector of the O&G industry, providing offshore drilling
and oilfield services, including engineering and maintenance services.
Prior
to listing, the company will undertake an internal reorganisation
exercise involving the transfer of the offshore drilling business and
certain companies in the oilfield services division under UMW and its
subsidiaries to UMW-OG.
The latter entered into sale and
purchase agreements on May 14, 2013 in relation to the internal
reorganisation. The listing of and quotation for its entire enlarged
issued and paid-up share capital of RM1.081bil comprises 2.162 billion
UMW-OG shares on Bursa's Main Market.
“The proposed listing of
UMW-OG is a key strategic initiative by UMW, which is expected to
accelerate the growth of the O&G business within the UMW group and
enable UMW to unlock and crystallise the value of its investment in the
UMW-OG group and enhance the shareholders' value at UMW level,” said
UMW president and group chief executive officer Datuk Syed Hisham Syed Wazir in a statement. The proceeds from the IPO will assist it in reducing its existing borrowings.
Maybank Investment Bank Bhd and CIMB Investment Bank Bhd have been appointed as the joint-principal advisers to UMW and UMW-OG for the proposals.
UMW expects the proposals to be completed by the fourth quarter of 2013.