Malaysia Marine & Heavy Engineering Holdings Bhd. said it aims to raise as much as 2.04 billion ringgit ($660 million) in the Southeast Asian country’s biggest initial share sale this year. The public offer may surpass Sunway Real Estate Investment Trust’s 1.5 billion ringgit sale in July and underscores rising investor appetite for equities in Malaysia amid an economic rebound from last year’s recession. The country’s benchmark stock index touched its highest level since January 2008 today and has rallied 16 percent this year.
Malaysia Marine plans to use some of the proceeds to upgrade its Pasir Gudang heavy engineering shipyard in the country’s southern Johor state, according to the prospectus issued today. The company said the money raised will also partly finance its investment in Turkmenistan’s Kiyanly yard, which it manages for Petronas Carigali Sdn.
“We will buy the stock,” Lye Thim Loong, who helps manage about $500 million at Avenue Invest Bhd. in Kuala Lumpur, said in a phone interview. Malaysia Marine’s prospects look good as the company benefits from increased capital spending by oil and gas companies, he said.
JPMorgan Chase & Co., Maybank Investment Bank Bhd. and Credit Suisse Group AG are managing the share sale.
‘Minimum Debt’
Managing Director Wan Yusoff Wan Hamat said the expansion of Kiyanly yard will need 2.7 billion ringgit in total investment and that the company has already spent more than 500 million ringgit before the share sale.
“The company will have very minimum debt post-listing,” he told reporters in Kuala Lumpur today. “We won’t have problems funding it.”
Malaysia Marine’s order book of 5.9 billion ringgit, mostly domestic projects, will last through 2012, Wan Yusoff said.
The company is a unit of MISC Bhd., the world’s biggest owner-operator of liquefied natural gas tankers. MISC is in turn controlled by state oil and gas company Petroliam Nasional Bhd., which also plans to list its petrochemicals division this year.
Malaysia Marine plans to sell 262 million shares, according to the prospectus. They will be offered to individuals at 3.61 ringgit, or 95 percent of the price charged to institutions once that has been fixed at the end of a book-building exercise through Oct. 14, the prospectus said. Individuals would pay whichever is the lower figure, it said.
Technip SA, Europe’s second-largest oilfield-services provider, will purchase a strategic stake, according to the prospectus. It will buy between 128 million and 158.4 million shares at a 2 percent premium over the institutional price.
Malaysia Marine plans to use some of the proceeds to upgrade its Pasir Gudang heavy engineering shipyard in the country’s southern Johor state, according to the prospectus issued today. The company said the money raised will also partly finance its investment in Turkmenistan’s Kiyanly yard, which it manages for Petronas Carigali Sdn.
“We will buy the stock,” Lye Thim Loong, who helps manage about $500 million at Avenue Invest Bhd. in Kuala Lumpur, said in a phone interview. Malaysia Marine’s prospects look good as the company benefits from increased capital spending by oil and gas companies, he said.
JPMorgan Chase & Co., Maybank Investment Bank Bhd. and Credit Suisse Group AG are managing the share sale.
‘Minimum Debt’
Managing Director Wan Yusoff Wan Hamat said the expansion of Kiyanly yard will need 2.7 billion ringgit in total investment and that the company has already spent more than 500 million ringgit before the share sale.
“The company will have very minimum debt post-listing,” he told reporters in Kuala Lumpur today. “We won’t have problems funding it.”
Malaysia Marine’s order book of 5.9 billion ringgit, mostly domestic projects, will last through 2012, Wan Yusoff said.
The company is a unit of MISC Bhd., the world’s biggest owner-operator of liquefied natural gas tankers. MISC is in turn controlled by state oil and gas company Petroliam Nasional Bhd., which also plans to list its petrochemicals division this year.
Malaysia Marine plans to sell 262 million shares, according to the prospectus. They will be offered to individuals at 3.61 ringgit, or 95 percent of the price charged to institutions once that has been fixed at the end of a book-building exercise through Oct. 14, the prospectus said. Individuals would pay whichever is the lower figure, it said.
Technip SA, Europe’s second-largest oilfield-services provider, will purchase a strategic stake, according to the prospectus. It will buy between 128 million and 158.4 million shares at a 2 percent premium over the institutional price.