LARGEST IPO THIS YEAR: Image shows one of Bumi Armada’s vessels. The group’s listing marked the completion of the largest IPO in Malaysia and the second largest in South East Asia, thus far, this year.
KUALA LUMPUR: Bumi Armada Bhd (Bumi Armada), a Malaysian-based international offshore services provider, debuted on the Main Market of Bursa Malaysia at RM3.65 per share, for a premium of 62 sen, over its initial public offering (IPO) price of RM3.03.
At the opening bell, 19.09 million shares exchanged hands.
“Today, we find that we are in the sweet spot of the industry where supply and demand is actually in favour of contractors like ourselves,” said executive director and chief executive officer Hassan Assad Basma.
Speaking to reporters after the company’s listing yesterday, he said the company aimed to become the world’s fourth largest player by fleet size by end-2013.
He added that the company was in a good industry spot as the oil and gas industry remained buoyant and there were ample investment opportunities.
“Bumi Armada is in the sweet spot of the industry despite many credible players around,” he said, adding that the company’s IPO received tremendous response from both international and Malaysian investors, including some of the biggest names in the investment community.
Bumi Armada’s listing marked the completion of the largest IPO in Malaysia and the second largest in South East Asia, thus far, this year.
The market capitalisation of the company, based on the IPO price of RM3.03 per share, stood at RM8.9 billion.
The IPO comprised 878.538 million ordinary shares or 30 per cent of Bumi Armada, of which, 22 per cent were primary shares offered by the company and eight per cent were secondary shares offered by certain existing shareholders.
The retail offering also attracted more than 57,000 applications for 614.6 million shares against 58.6 million shares available, representing an over subscription rate of 9.5 times.
As of noon break, Bumi Armada shares stood at RM4.04, up RM1.01 from its IPO price, with 233 million shares traded. — Bernama