Bumi Armada said sell shares at RM3.03

Bumi Armada Bhd, oil services company controlled by Malaysian billionaire T. Ananda Krishnan, sold shares to institutional investors at RM3.03 apiece in the country’s biggest initial public offering this year, said two people with familiar the matter who couldn’t be named as the information is still confidential.

This is said to be in the upper half of its indicative price range. The Kuala Lumpur-based company had marketed its IPO shares at between RM2.80 and RM3.15 per share, three other people familiar with the matter said on June 27.

At RM3.03, Bumi Armada would have raised RM2.66 billion (US$888 million), making this the Southeast Asian nation’s biggest share sale since Petronas Chemicals Group Bhd raised a record RM12.8 billion ringgit in November. CIMB Investment Bank Bhd, Maybank Investment Bank Bhd, RHB Investment Bank Bhd, Credit Suisse Group AG and CLSA Asia-Pacific Markets are arranged the share sale.

The company didn’t immediately respond to an e-mail seeking comment.

Bumi Armada said on June 30 that it has lined up so-called cornerstone investors including Great Eastern Life Assurance (Malaysia) Bhd and Prudential Fund Management Bhd who will buy a combined 10.2 per cent of the shares. -- Bloomberg