Malaysian oil driller kicks off $738m IPO

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UMW Oil & GasUMW Oil & Gas Corporation Bhd, a Malaysian offshore and drilling services firm, will start taking orders on October 3 for its 2.36 billion ringgit ($738 million) initial share sale, Reuters reported.

The initial public offering is set to be the biggest in Malaysia in 2013 so far.UMW Oil & Gas, the oil-field services arm of state-backed conglomerate UMW Holdings Bhd, is expected to trade on the local bourse from November 1

UMW Oil & Gas is seeking to sell 843.1 million shares at the maximum indicative price of 2.80 ringgit per share. Its parent plans to take 647.9 million ringgit of the proceeds to pay debt and finance capital expenditure, while UMW Oil & Gas will use the remaining 1.7 billion ringgit to buy rigs, clear debts and pay listing expenses.

The company will offer 648.6 million shares, or 76.9 per cent of the total shares sold, to institutional players. The balance will go to retail investors, according to its draft prospectus in June. Up to 17 cornerstone investors will take up 61 per cent of the institutional tranche. These investors include Fidelity Investments, Hwang Investment, Fullerton Fund and Malaysian state-owned funds such as the Employee Provident Fund.

CIMB, Credit Suisse, Goldman Sachs and Maybank are the joint global coordinators for UMW Oil & Gas, and are joint bookrunners with Standard Chartered.

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Reading Time: 1 minute

UMW Oil & Gas Corporation Bhd, a Malaysian offshore and drilling services firm, will start taking orders on October 3 for its 2.36 billion ringgit ($738 million) initial share sale, Reuters reported.

Reading Time: 1 minute

UMW Oil & GasUMW Oil & Gas Corporation Bhd, a Malaysian offshore and drilling services firm, will start taking orders on October 3 for its 2.36 billion ringgit ($738 million) initial share sale, Reuters reported.

The initial public offering is set to be the biggest in Malaysia in 2013 so far.UMW Oil & Gas, the oil-field services arm of state-backed conglomerate UMW Holdings Bhd, is expected to trade on the local bourse from November 1

UMW Oil & Gas is seeking to sell 843.1 million shares at the maximum indicative price of 2.80 ringgit per share. Its parent plans to take 647.9 million ringgit of the proceeds to pay debt and finance capital expenditure, while UMW Oil & Gas will use the remaining 1.7 billion ringgit to buy rigs, clear debts and pay listing expenses.

The company will offer 648.6 million shares, or 76.9 per cent of the total shares sold, to institutional players. The balance will go to retail investors, according to its draft prospectus in June. Up to 17 cornerstone investors will take up 61 per cent of the institutional tranche. These investors include Fidelity Investments, Hwang Investment, Fullerton Fund and Malaysian state-owned funds such as the Employee Provident Fund.

CIMB, Credit Suisse, Goldman Sachs and Maybank are the joint global coordinators for UMW Oil & Gas, and are joint bookrunners with Standard Chartered.

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