* UMW plans to sell 39 pct of oil and gas unit
* Asian IPOs are picking up, AirAsia X to launch IPO in June
By Yantoultra Ngui
KUALA LUMPUR, May 17 UMW Holdings Bhd,
Malaysia's industrial-to-automotive conglomerate, is planning to
sell 39 percent of its oil and gas unit in an IPO, a deal that
some bankers say could raise up to $1 billion.
The listing comes amid a pick-up in IPOs and secondary
share offerings in Asia and could be one of the largest
Malaysian offerings this year after independent power producer
Malakoff Bhd recently announced it was delaying its debut until
An easing in political uncertainty after Malaysia's general
elections last week has encouraged companies to move forward
with their listing plans.
Long haul carrier AirAsia X Bhd is looking to raise $300
million in an IPO, with pricing to take place next month. Energy
and water firm Ranhill Energy and Resources Bhd is also likely
to raise up to $337 million in June.
Stated-backed UMW said it is offering 648.6 million shares
or 30 percent of the offshore, drilling and oil-field services
provider to institutional investors and the remaining 194.6
million shares to retail investors.
Proceeds will be used for repaying bank debt, capital
expenditure and working capital, UMW said.
"Barring any unforeseen circumstances, the proposals are
expected to complete by the fourth quarter of 2013," UMW added.
The company, which has been working on a listing for the
unit since 2007, did not disclose how much it will raise from
CIMB Group Holdings Bhd, Credit Suisse Group AG
, Goldman Sachs & Co and Malayan Banking Bhd
(Maybank) are joint global co-ordinators, while
Standard Chartered is a bookrunner, sources told
Reuters in February.
UMW counts Malaysia's largest fund management firm
Permodalan Nasional Bhd and American investment management
company Vanguard Group Inc as shareholders.