11 June 2012
Gas Malaysia rose 15% to day-high of RM 2.52 and closed at RM 2.42 on first day trading, 87 million shares traded
Gas Malaysia Bhd, an energy distributor linked to Malaysian billionaire Syed Mokhtar Al-Bukhary, jumped on its first day of trading in Kuala Lumpur today after completing the Southeast Asian nation’s biggest share sale so far this year.
The stock surged as much as 15 per cent to RM2.52 from an IPO price of RM2.20, the second-strongest debut in Malaysia this year. It pared gains to close at RM2.42 and was the exchange’s most-active counter with 87 million shares changed hands.
“This is one of the major oil and gas IPOs,” said Teh Kian Yeong, an analyst at K&N Kenanga Holdings Bhd in Kuala Lumpur by phone. “Its share price was also supported by above-average dividend yield.”
Its RM734 million offering comes amid a resurgence in Malaysian share sales, even as volatility in global stock markets has seen offerings delayed or canceled elsewhere. Oil palm planter Felda Global Ventures Holdings Bhd drew orders from institutional investors for more than 15 times the stock available to them in its RM10.5 billion offering this month, two people with knowledge of the matter said June 7.
IHH Healthcare Bhd, Asia’s biggest hospital operator, plans to raise more than RM6 billion in an initial public offering in Kuala Lumpur, two people familiar with the matter said on June 1. Six other companies also currently have prospectuses posted with the Securities Commission for public disclosure.
Malaysian stocks have withstood the global selloff, with the KLCI index little changed last month compared with a 10 per cent drop in the MSCI Asia Pacific Index. EITA Resources Bhd, an elevator manufacturer, made this year’s strongest debut, rising almost 16 per cent on its first day of trading.
Gas Malaysia, which counts Syed Mokhtar’s MMC Corp as its biggest shareholder, is the sole licensed seller of natural gas in Peninsular Malaysia, according to its listing document. The Selangor-based company also has rights to supply liquefied petroleum gas.
It plans to pay at least 75 per cent of profit as dividends from 2013, according to the prospectus. The company intends to distribute all the earnings net of tax this year as dividend, Gas Malaysia said.
Malayan Banking Bhd managed the share sale, helped by Bank Muamalat Malaysia Bhd and Kenanga Investment Bank Bhd.
Graff Diamonds Corp, the London-based jeweler, and China Yongda Automobiles Services Holdings Ltd. shelved share sales in Hong Kong last month. Formula One Chief Executive Officer Bernie Ecclestone said June 2 the auto racing series’ planned Singapore offering may not take place until later this year because of time pressures and a volatile equity market. -- Bernama
Gas Malaysia Bhd opened at RM2.47, which was 27 sen above its offer price of RM2.20 when it made its debut on the Main Market of Bursa Malaysia on Monday.
At 9.01am, it was up 26 sen to RM2.46. There were 13.79 million shares done.
The FBM KLCI jumped 9.65 points to 1,580.27. Turnover was 21.97 million shares valued at RM45.88mil. There were 80 gainers, 17 losers and 48 stocks unchanged.
Under Gas Malaysia's initial public offering, 25.68 million shares were offered to the public, which was oversubscribed by 21.64 times. The institutional offering of 303.31 million shares was offered to institutions at RM2.20 per share.
A total of 44,561 applications for 581,390,300 Offer Shares were received from the Malaysian Public for a total of 25,680,000 Offer Shares available for public subscription, which represents an oversubscription rate of 21.64 times.
Last Thursday, it reported that its earnings fell 53.5% to RM34.54mil in the first quarter ended March 31, 2012 from RM74.41mil a year ago as its profit was affected by margin compression. Its revenue increased 9.2% to RM506.58mil from RM464.06mil.