| KUALA LUMPUR
KUALA LUMPUR Oct 13 Malaysia's UMW Oil & Gas
Corp Bhd, an offshore and drilling services firm, has
raised about 2.36 billion ringgit ($740 million) in its IPO,
pricing it at the top of expectations, two sources with direct
knowledge of the deal said on Sunday.
The strong demand for the country's largest IPO this year,
signalled a boost for Malaysia's capital market on pent-up
demand for emerging market stocks.
This month, port operator Westports Holdings Bhd
priced its $680 million IPO at the top of its projected range.
UMW Oil & Gas, a unit of state conglomerate UMW Holdings Bhd
, priced the offering at 2.80 ringgit per share versus
a tight indicative range of 2.70-2.80 ringgit, said the sources,
who were not authorised to speak publicly on the matter
"It was oversubscribed by more than 50 times," one of the
sources said, adding that the offer to institutional investors
was closed on Thursday, well ahead of the originally scheduled
Its parent plans to take 647.9 million ringgit of the
proceeds to pay debt and finance capital expenditure, while UMW
Oil & Gas will use the remaining 1.7 billion ringgit to buy
rigs, clear debts and pay listing expenses.
The company leaned heavily on cornerstone investors, ranging
from Fullerton Fund Management Company to FIL Investment
Management, who accounted for 47.3 percent of the total offer.
Banking sources said foreign funds have started returning to
the region, jostling to bid for initial share sales after the
U.S. Federal Reserve's unexpected decision not to withdraw
UMW Oil & Gas officials could not be reached for comment on
CIMB, Credit Suisse, Goldman Sachs
and Maybank are the joint global co-ordinators
for UMW Oil & Gas, and also the joint bookrunners with Standard
(Editing by Robert Birsel)