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
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
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
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
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
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
to read clipping