Bumi Armada Berhad, Malaysia’s largest supplier of vessels for the oil and gas industry finally launched its initial public offering prospectus today.

Bumi Armada is expected to be listed on the Main Market of Bursa Malaysia on 21 July 2011 (Thursday). 

IPO offer/issue price

The IPO issue price for retail investors fixed at RM3.15 per share, subject to the lower of RM3.15 and the institutional price.

Should the institutional price is lower than RM3.15 after its bookbuilding exercise, the retail price will be reduced accordingly to match with the institutional price. As reported by Reuters earlier, institutional price ranges from RM2.80 to RM3.15 according to Bumi Armada IPO’s term sheet.

Summary of IPO fund raising
Malaysian Public No of shares
– Bumiputera 29,284,700 1.0%
– Non-bumiputera 29,284,700 1.0%
Employees & associates 21,292,000 1.0%
Institutional investors 564,400,200 19.3%
Public issue 644,261,600 22.3%
Offer for sale
– Institutional investors 234,277,000 8.0%
Total IPO shares 878,538,600 30.0%
Enlarged share capital 2,928,462,000
Funds to be raised RM 2,767 mil


Some important dates
Closing of retailing offering 7 July 2011 Thur
Closing of institutional offering 8 July 2011 Fri
Price determination date 11 July 2011 Mon
Balloting of applications 11 July 2011 Mon
Allotment of shares 19 July 2011 Tue
Listing date 21 July 2011 Thur


Utilisation of proceeds RM million
Capital expenditure 592
Working capital 562
Rapay bank borrowings 775
Listing expenses 100
Proceeds from offer for sales to existing shareholders 738
Total IPO funds to be raised 2,767

Look at the listing expenses going to pay, it is RM100 million! It represents 5% of total funds raised from public issue of RM2,029 million. Not cheap though. Existing shareholders that raised RM738 million will have to pay for their portion of listing expenses which are not included in the RM100 million. A mega IPO I would say. A mega fee for merchant bankers, advisors and reporting accountants too.

If you are interested to read Bumi Armada Berhad IPO prospectus, download from Bursa Malaysia website below:-

bumi-armada-berhad-ipo-prospectus

Download Bumi Armada IPO prospectus from Bursa Malaysia website.