Wednesday, 17 July 2013

UMW Oil & Gas plans RM2.36b IPO

UMW Oil & Gas Corp Bhd is seeking to sell about RM2.36bn in shares. Parent UMW Holdings Bhd appointed Malayan Banking Bhd and CIMB Group Holdings Bhd as principal advisers to help spin off its energy business by the fourth-quarter, according to a statement yesterday. The unit may sell as many as 843.2m shares at an indicative price of RM2.80 apiece, the document showed. UMW Holdings may take as much as RM647.9m for itself from the IPO to pay debt as well as for capital expenditure and working capital, the document showed. The parent company, based outside Malaysia’s capital in Shah Alam, has RM1.24bn of debt falling due by 2017, according to data compiled by Bloomberg. Its energy unit manufactures oil pipes and provides services including offshore drilling and pipe-coating, according to the circular. UMW Oil & Gas is expected to get RM1.7bn for itself from the sale, which it would primarily use to buy and maintain rigs, upgrade machinery and pay debt to its parent. (StarBiz)

Source: CIMB Daybreak - 17 July 2013

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