KUALA LUMPUR, July 16 Malaysian conglomerate UMW
Holdings Bhd will spin off its oil and gas unit to
raise 2.36 billion ringgit ($740 million), the company said on
Tuesday, in what would the country's largest initial public
offering this year.
UMW Oil & Gas Corp, which provides offshore, drilling and
oilfield services, has been working on the listing since 2007.
The company said in a stock exchange filing it may sell as
many as 843.2 million shares, or 39 percent of its enlarged
share capital, at an indicative price of 2.80 ringgit each.
The IPO will be Malaysia's largest this year after
independent power producer Malakoff Bhd said in May it was
delaying its debut until next year.
UMW Holdings could take 647.9 million ringgit of the IPO
proceeds to pay debt and finance capital expenditure while UMW
Oil & Gas is expected to receive up to 1.7 billion to buy rigs,
clear debts and pay listing expenses.
The listing comes amid a pick-up in IPOs and secondary share
offerings due to an easing in political uncertainty in Malaysia
after a general elections in May.
Long-haul carrier AirAsia X Bhd raised $310 million in a
muted IPO last Wednesday.
Energy and water firm Ranhill Energy and Resources Bhd
raised $237 million and is expected to list on the
Bursa main market on July 31.
($1 = 3.1905 Malaysian ringgit)
(Editing by David Cowell)