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|
|Employees & associates||21,292,000||1.0%|
|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|
|Rapay bank borrowings||775|
|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:-
Download Bumi Armada IPO prospectus from Bursa Malaysia website.