Bumi Armada make big Entry
Filed Under (Bursa Malaysia) by Webmaster on 22-07-2011
Tagged Under : Bumi Armada, IPO, T. Ananda Krishnan
Bumi Armada Bhd, controlled by tycoon T. Ananda Krishnan, made a sterling listing debut amid weak overall market sentiment with more than 30 per cent premium over its initial public offering (IPO) price of RM3.03.
It closed RM1.11 higher to RM4.14 on a volume of 303.7 million shares, making it Bursa Malaysia’s top gainer and most active stock yesterday.
The stock opened 21 per cent higher at RM3.65, before rising to RM3.99 on a heavy trading volume of 201.9 million shares by midday.
Bumi Armada chief executive officer Hassan Assad Basma said the IPO received strong demand from both the international and Malaysian investors, including some of the biggest names in the investment community.
“From the initial opening, there seems to be a trend of demand and we think we are in the right direction. It’s beyond expectation but this is where hard work starts,” Hassan told reporters at the listing ceremony here yesterday.
On how Bumi Armada expects to perform from its listing debut given the current weak market, Hassan said: “We belong to the global scene and the outside market seems to be sluggish. Yes, there are uncertainties and choppy waters but we believe that our fundamentals are strong. That will help us ride out the wave.”
He said Bumi Armada will continue with its journey of growth as promised in its listing prospectus.
“It will be a hard work to build and expand our network. We expect more of the same good performance we achieved previously.”
Bumi Armada’s listing was the largest IPO in Malaysia and the second largest in Southeast Asia thus far this year.
The company’s market capitalisation, based on the IPO price of RM3.03 per share, was RM8.9 billion. The IPO comprised 878.54 million ordinary shares or 30 per cent of Bumi Armada.
Hassan said the company aims to become the world’s fourth largest floating, production, storage and offloading (FPSO) operator by end of 2013 from the current eighth position.
“The company is in a good industry spot as the oil and gas industry remains buoyant and there are ample investment opportunities. Bumi Armada is in the sweet spot of the industry despite many credible other players around.”
With a fleet of 43 offshore support vessels, two FPSOs and a derrick pipe-lay barge, Bumi Armada serves its customers in over 10 countries across Asia, Africa and Latin America.
