UMW shares surge at debut in Malaysia

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Bursa MalaysiaUMW Oil & Gas Corp Bhd at its initial public offering (IPO) on November 1 surged 11 per cent as investors cheered Malaysia’s largest new listing for 2013.

Its shares peaked at 3.18 ringgit, 38 sen above the issue price of 2.80 ringitt, before settling at 3.10 ringgit for a market capitalisation of 6.7 billion ($2.1 billion). It was the day’s most actively traded with 212.37 million shares changing hands.

On November 4, the share price climbed further to a high of 3.21 ringgit until settling above the 3.15 ringgit range

According to Bloomberg data, the company’s first-day performance even beat analysts’ consensus 12-month target price of 3.08 ringgit.

At the listing ceremony, UMW Oil & Gas president Rohaizad Darus told journalists that the ASEAN and Asia-Pacific regions held promise for its young fleet of jack-up drilling rigs, with eight to 12 contracts up for grabs over the next two years in Malaysia alone.

The company is in talks with “a number of parties” for Naga 5, a newly-built rig it ordered in May 2013 for delivery next May, and expects to secure a contract soon, Rohaizad said.

UMW Oil & Gas’ earnings are anchored by its core drilling rig business, which accounts for 90 per cent and 70 per cent of its top and bottom line. It also supplies hydraulic workover units as well as treading, inspection and repair services for tubular products used in oil and gas.

The firm – Malaysia’s first owner and operator of jack-up drilling rigs – has an order backlog of $465 million in drilling jobs to last until 2018.

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Reading Time: 2 minutes

UMW Oil & Gas Corp Bhd at its initial public offering (IPO) on November 1 surged 11 per cent as investors cheered Malaysia’s largest new listing for 2013.

Reading Time: 2 minutes

Bursa MalaysiaUMW Oil & Gas Corp Bhd at its initial public offering (IPO) on November 1 surged 11 per cent as investors cheered Malaysia’s largest new listing for 2013.

Its shares peaked at 3.18 ringgit, 38 sen above the issue price of 2.80 ringitt, before settling at 3.10 ringgit for a market capitalisation of 6.7 billion ($2.1 billion). It was the day’s most actively traded with 212.37 million shares changing hands.

On November 4, the share price climbed further to a high of 3.21 ringgit until settling above the 3.15 ringgit range

According to Bloomberg data, the company’s first-day performance even beat analysts’ consensus 12-month target price of 3.08 ringgit.

At the listing ceremony, UMW Oil & Gas president Rohaizad Darus told journalists that the ASEAN and Asia-Pacific regions held promise for its young fleet of jack-up drilling rigs, with eight to 12 contracts up for grabs over the next two years in Malaysia alone.

The company is in talks with “a number of parties” for Naga 5, a newly-built rig it ordered in May 2013 for delivery next May, and expects to secure a contract soon, Rohaizad said.

UMW Oil & Gas’ earnings are anchored by its core drilling rig business, which accounts for 90 per cent and 70 per cent of its top and bottom line. It also supplies hydraulic workover units as well as treading, inspection and repair services for tubular products used in oil and gas.

The firm – Malaysia’s first owner and operator of jack-up drilling rigs – has an order backlog of $465 million in drilling jobs to last until 2018.

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