Sunday 3 July 2011

BUMI ARMADA IPO at RM 3.15 –Year 2010 PER at 26 !!

Few days ago, Bumi Armada have publicly announced it’s IPO and target to be listed on 21-Jul-2011. At retail offer price of RM 3.15 Bumi Armada market capital would be at RM 9.2 billion upon listing.

A bit on the company’s background, Bumi Armada was formed in 1995 and previously listed on Bursa Malaysia on 25-Jun-2011. On 18-Apr-2003, the company decided to be delisted prior to restructuring plan in Year 2005.

Bumi Armada provide offshore services via 4 business units which are, FPSO, OSV, T&I and OFS and 2 support units namely FMS and EPC.

Details of the offering are as follow :

         i.            Retail Offering   - 79,861 million shares
a.       Malaysian citizen                              : 58.569 million shares
b.      Directors & eligible employees         : 21.292 million shares
       ii.            Institutional Offering - 798,677 million shares

IPO Summary




On 20-Jun-2011, Bumi Armada entered into master cornerstone investors placing agreement of 300 million shares which represent 10.24% of the enlarge issued & paid up after the IPO exercise.
Final retail price will be determined after the Institutional Price fixed on the Price determination date and will be the lower of
         i.            Retail Price of RM 3.15 per share
       ii.            The institutional Price

Institutional price will be determined by a bookbuilding process wherein institutional investors were invited to bid for portions of the offering by specifying the number of IPO shares and price they would prepare to acquire. Bookbuilding process commenced from 28-Jun-2011 to 8-Jul-2011. From there, Institutional Prices will be fixed.

Market talk has been rife that Bumi Armada’s IPO has garnered strong interest from foreign and local institutional investors, with sources disclosing that the company saw its institutional offer 5.6 times oversubscribed on the first day its bookbuilding exercise.

For the financial year ended Dec 31 2010, Bumi Armada posted total revenue of RM1.24 bil and profit of RM350.1 mil, compared with a turnover of RM732.1mil and net profit of RM277.4mil for FY09. 84.8% of its revenue for FY10 were derived from outside Malaysia.

Financial Year Summary




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