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.

Others Delayed

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

Source: www.btimes.com.my

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.

Source: www.thestar.com.my

Gas Malaysia IPO Update: Gas Malaysia's 25.60 million shares offered for sale to public oversubscribed by 21.64 times, retail offering price at RM 2.20

Gas Malaysia Bhd's offering of 25.68 million shares to the public under its listing exercise was oversubscribed by 21.64 times.

Malaysian Issuing House (MIH) said on Tuesday there were 44,561 applications for 581.39 million shares from the public for the 25.68 million shares.

Of the 25.68 million shares, MIH said 12.84 million offer shares were set aside for Bumiputera individuals, companies, co-operatives, societies and institutions. MIH said there were 15,034 applications for 175.62 million offer shares was received under the Bumiputera category, or an oversubscription of 12.68 times.

Under the public category, there were 29,527 applications for 405.76 million offer shares, representing an oversubscription of 30.60 times.

It also said the sole bookrunner Maybank Investment Bank Bhd had confirmed that the institutional offering of 303.31 million offer shares was completed.

"The institutional price was fixed at RM2.20 per offer Share. Accordingly, the final IPO price for the retail offering is fixed at RM2.20 per offer share," said MIH.

Maybank Investment Bank was also the principal adviser and joint underwriter for the IPO. The other joint underwriters were Bank Muamalat Malaysia Bhd and Kenanga Investment Bank Bhd.

The listing exercise involved the offer for sale by the vendors of 333.84 million shares, of which 147.67 million shares were to Bumiputera institutional and selected investors approved by the Ministry of International Trade and Industry.

The remaining 155.63 million shares were offered to institutional and selected investors; 4.84 million shares were reserved for eligible directors and employees of Gas Malaysia and 25.68 million shares to the public.

Source: www.thestar.com.my

Gas Malaysia IPO Update: Gas Malaysia's 2011 net profit decreased 23% and net margins dropped from 26.3% to 12.5% due to new gas tariff, Gas Malaysia will be exposed to the new gas tariff through the whole of 2012 and not only six months during last year - Managing Director Datuk Muhamad Noor Hamid

The three major shareholders of Gas Malaysia Bhd will receive a total of RM734mil from the sale of their shares in the former's impending initial public offering (IPO).

Gas Malaysia's IPO will entail only an offer of sale of 333.8 million shares at RM2.20 a piece.

The three main owners of Gas Malaysia stock are MMC-Shapadu (Holdings) Sdn Bhd (55%), Tokyo Gas-Mitsui & Co Holdings Sdn Bhd (25%) and Petronas Gas Bhd (20%). The three will rake in RM403mil, RM183.6mil and RM146.8mil respectively from the sale of Gas Malaysia shares.

Post IPO, MMC-Shapadu would see its stake reduced to 40.7%, while Tokyo Gas-Mitsui at 18.5% and Petronas Gas with a 14.8% stake.

MMC-Shapadu is a 76% owned subsidiary of MMC Corporation Bhd, while Shahpadu Corporation Sdn Bhd owns the rest of the stake, a company that dabbles in a diverse range of businesses ranging from oil and gas to property development.

Speaking at a recent interview, Gas Malaysia Bhd managing director Datuk Muhamad Noor Hamid said he expected a potential double digit growth in gas volume supplied for 2013 to drive the company's revenue moving forward.

In February 2012, Gas Malaysia signed a gas supply agreement with Petronas for the supply of 492 million standard cubic per day (mmscfd), a 29% increase from its previous supply of 382 mmscfd.

The new agreement starting January 2013 will be for a duration of 10 years with an option to renew for another five years.

For its financial year ended 2011, the company hit a revenue of RM2bil from RM1.8bil recorded previously, driven by the gas tariff revision announced by the government, which took effect on June 1, 2011, in addition to increase in sales volume.

However, its net profit decreased by 23% to RM229mil in 2011 from RM298mil recorded in the previous year due to the new gas tariff, which resulted in Gas Malaysia's average margin declining by 48.9% to RM2.02 per mmBtu, or just 12.5% as margins compared to 26.3% recorded previously.

“We should be doing fine this year in terms of revenue and volume.

“The only thing that will be impacted would be our net profit as we will be exposed to the new gas tariff through the whole year and not only six months during last year,” he said.

He said the net profit would be lower but still very healthy and would grow in tandem with the new increase in volume to be supplied to its customers.

The company intends to pay out 100% of its net profit for its financial year ending Dec 31, 2012, and subsequently targets a payout ratio of not less than 75% of its net profit moving forward.

Gas Malaysia will be publishing its prospectus today, and is enroute to be listed on the Main Market of Bursa Malaysia on June 11.

Established in 1992 to provide an alternative source of energy to the country, it sell, market and distribute natural gas as well as construct and operate the Natural Gas Distribution System in the peninsular.

It operates a network of approximately 1,800 km of pipelines throughout the peninsular, and source its natural gas supply from Petronas via the Peninsular Gas Utilisation Transmission System which is owned and operated by Petronas Gas Bhd.

Source: www.thestar.com.my

Gas Malaysia IPO Update: 333.84 million shares offered for sale will be from existing shareholders, price fixed at RM 2.20 per share

Its position as the sole licensed operator and distributor of natural gas in Peninsular Malaysia and a high dividend payout policy are among factors attracting investors to Gas Malaysia Bhd.

The debt-free company, with small capital expenditure requirements for the next few years, expects to pay out as dividends its entire consolidated after tax profit for the financial year ending Dec 31, 2012.

It is looking at a payout ratio of not less than 75 per cent of its consolidated after tax profit for 2013.

Its managing director, Datuk Muhamad Nor Hamid, said on Friday Gas Malaysia's major spending will be this year where it will invest RM130mil to RM140mil for pipeline expansion and infrastructure in preparation for the distribution of the liquefied natural gas that would be supplied by Petronas from Malacca.

It would be expanding its pipeline by 70km to 90km to supply new customers and strengthen supply security.

Even then, it would be financed with internal funds, he said at a press conference after the launching of Gas Malaysia's prospectus.

"At least for the next three to four years, we don't need to raise extra capital," he said, adding that for the next few years, the annual capex requirement for Gas Malaysia would be around RM30mil to RM40mil.

Gas Malaysia, which operates 1,800 km of pipelines across Peninsular Malaysia, gets all its natural gas supply from Petronas.

Commenting on the dip in net profit to RM229.2mil for 2011 against RM298.3mil in 2010, he said it was due to the new gas tariff which resulted in the lower margin.

Its revenue in 2011 increased to RM2bil from RM1.807bil in 2010.

However, the profitability should start to pick up again with growth in revenue and volume with the addtional gas to be supplied by Petronas, Muhamad said.

Gas Malaysia has 700 industrial customers, 519 commercial customers and 10,612 residential customers for natural gas, while its liquefied petroleum gas customers comprise one industrial customer, 1,132 commercial customers and 20,663 residential customers.

He said 99% of Gas Malaysia's revenue is derived from the 701 industrial customers.

The company is scheduled for listing on the Main Market of Bursa Malaysia Securities Bhd on June 11.

In conjunction with its listing, the existing shareholders will offer for sale 333.840 million shares with indicative initial public offering price of RM2.20 each.

Upon listing, MMC-Shapadu (Holdings) Sdn Bhd will see its stake reduced to 40.7% from 55%, while Tokyo Gas-Mitsui & Co Holdings Sdn Bhd's stake will come to 18.5% from 25% and Petronas Gas Bhd's stake reduced to 14.8% from 20%.

Source: www.thestar.com.my

Gas Malaysia IPO Update: MMC Corp obtains approval from Securities Commission to register IPO prospectus, one step closer to listing

Gas Malaysia Bhd has obtained approval from Malaysia’s Securities Commission to register its listing prospectus, its major shareholder MMC Corp Bhd said in a stock exchange filing on Monday, bringing the company a step closer to its market debut in the second quarter.

The planned listing of the country’s sole supplier of natural gas to the non-power sector was originally scheduled for the fourth quarter of 2011, but was delayed due to non-compliance with the commission’s rules.

One of the commission’s conditions was for Gas Malaysia to ensure that its petrol stations were not built on land that was not designated for that purpose, according to an announcement by MMC Corp in October last year.

The listing is expected to raise over RM734.4 million (US$239 million), according to Gas Malaysia, potentially making it the third largest IPO in 2012 after Felda Global Venture Holdings Bhd and Integrated Healthcare Holdings Bhd.

Gas Malaysia is 55 percent-owned by MMC-Shapadu (Holdings) Sdn Bhd, while Tokyo Gas-Mitsui & Co (Holdings) Sdn Bhd holds 25 percent and Petronas Gas Bhd owns the balance.

Malaysia’s seventh-richest person, Syed Mokhtar Al-Bukhary, controls MMC Corp. Maybank Investment Bank is the advisor for the IPO. -- Reuters

Source: www.btimes.com.my