(EnergyAsia, July 4 2011, Monday) — Malaysia’s largest offshore oil and gas services provider, Bumi Armada Berhad, is aiming to raise around RM1.9 billion from through an initial public offering (IPO) of 30% of its enlarged share capital of 2.25 billion shares to retail and institutional investors. (US$1=RM3).
The IPO will comprise the offering of up to 878.539 million existing at around RM3.15 a share and new ordinary shares of RM0.20 each in the company that would immediately value the firm at over RM7 billion.
Bumi Armada provides offshore services through four business units and two support units. The main business units are FPSO, Offshore Support Vessels (OSV), Transport & Installation (T&I) and Oilfield Services (OFS) and are supported by the company’s Fleet Management Services (FMS) and Engineering, Procurement & Construction (EPC) units.
With 43 OSVs and 3 FPSOs in operation, and a derrick pipe-lay barge, Bumi Armada is the largest OSV owner operator in Malaysia and the eighth largest FPSO operator in the world.
Bumi Armada expects to list its shares on the main board of the Bursa Malaysia Securities Berhad exchange in Kuala Lumpur on July 21. It enjoys stable and recurring cash flows provided by long term contracts in the FPSO business, and has a large and modern OSV fleet with cross-border capability that is increasingly focused on deepwater and harsh water environments.
Its revenues have grown from RM519.8 million in 2008 to RM732.1 million in 2009, and RM1,241.4 million in the most recent financial year ended December 31 2010. As at June 1 2011, its orderbook, generated in various markets with different customers, stood at RM5.8 billion.
“Bumi Armada has a proven track record of delivery to our customers, driven by solid in-house expertise and the multinational in-depth knowledge and experience of its culturally diverse management team,” said Hassan Assad Basma, executive director and CEO of Bumi Armada.
“We aim to be the fourth largest FSPO player in the world (by fleet size) by the end of 2013. Our sound financial discipline, risk management, corporate governance practices and strong customer focus stand us in good stead to realise Bumi Armada’s future growth objectives, on the back of attractive margins and robust industry fundamentals.”
For its institutional offering, the company has secured cornerstone investors, Great Eastern Life Assurance (Malaysia) Berhad, Permodalan Nasional Berhad (PNB), HwangDBS Investment Management Berhad, Prudential Fund Management Berhad, Hong Leong Assurance Berhad, Guoline Capital Limited and Asia Fountain Investment Company Limited, which have agreed to purchase, a total of 300 million shares, representing approximately 10.2% of Bumi Armada’s enlarged issued and paid-up share capital.
The retail and institutional (including cornerstone investors) offer will comprise of 2.7%, and 15.8% of its enlarged issued and paid-up capital. This is in addition to the offer of 11.5% of the enlarged issued and paid-up share capital to Bumiputera investors approved by the Ministry of International Trade and Industry (MITI).
The company’s existing shareholders before listing include Objektif Bersatu Sdn Bhd, Ombak Damai Sdn Bhd, Wijaya Sinar Sdn Bhd, Karisma Mesra Sdn Bhd and Wijaya Baiduri Sdn Bhd which own a total 70% of its shares. The company is controlled by Malaysian billionaire T. Ananda Krishnan.
CIMB Investment Bank Berhad (CIMB), Maybank Investment Bank Berhad and RHB Investment Bank Berhad (RHB) are the joint principal advisers to Bumi Armada for the IPO. CIMB, Maybank IB and Credit Suisse, the joint global coordinators, are also the Joint bookrunners with RHB, CLSA and UBS.