01 Nov 2011 - Biz Edge

KUALA LUMPUR: MMC Corp Bhd is on track to list its subsidiary Gas Malaysia Bhd by December despite market volatility and global economic uncertainty dampening investor sentiment.

MMC finance director Anwar Syahrin Ajib told reporters yesterday that the group is still sticking to its year-end target to list Gas Malaysia though the deal is dependent on fulfilling certain conditions imposed by the Securities Commission (SC) and wider market conditions.

Anwar also said Gas Malaysia’s IPO could garner up to RM2.20 per share, which was the top end of its indicative offer price range.

“We think we are going to get that price for a few reasons, such as the company’s performance and by benchmarking it against other similar companies,” Anwar said after the MMC EGM yesterday.

MMC shareholders voted in favour of the proposed listing of Gas Malaysia.

Its chairman Datuk Wira Syed Abdul Jabbar Syed Hassan said Gas Malaysia’s listing is expected to attract attention despite market conditions as investors would be looking to mop up the shares for dividend yield.

Syed Abdul Jabbar also said the prospectus is scheduled to be launched late this month.

Anwar (left) and Syed Abdul Jabbar after the EGM yesterday.

Anwar and Syed Abdul Jabbar declined to comment on the future listing of the group’s other units, Malakoff Bhd and Johor Port Bhd.

To recap, the SC had on Oct 7 granted conditional approval for Gas Malaysia’s proposed listing on the Main Market with several conditions. The first is that Gas Malaysia is to execute a new gas supply agreement with Petroliam Nasional Bhd (Petronas) prior to the registration and issuance of its listing prospectus.

Additionally, the terms of the new agreement must not have a material adverse impact on Gas Malaysia’s business operations and future profitability.

Second, the SC requires Gas Malaysia to rectify any non-compliance with regard to petrol stations built on land not designated for such use within 12 months from the date of the SC’s letter of approval for the listing.

The third condition is that Gas Malaysia is to allocate at least 12.5% of its enlarged issued and paid-up share capital to bumiputera investors at the point of listing.

Gas Malaysia’s shareholders are MMC-Shapadu Holdings Sdn Bhd (55%), Tokyo Gas-Mitsui & Co Holdings Sdn Bhd (25%), Petronas Gas Bhd (20%) and Petronas, holding one special share.

To facilitate the listing, Gas Malaysia shares will be subdivided to increase the company’s paid-up capital from 642,000 shares to 1.284 billion shares. Its shareholders will then offer for sale 333.84 million shares, representing 26% of Gas Malaysia’s enlarged paid-up capital.

Some 303.49 million shares (23.64%) will be offered to institutional investors and bumiputera institutional investors while the remaining 30.34 million shares (2.36%) will form the retail offering portion for the public and eligible directors and employees.