MISC Bhd’s subsidiary, Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE), is expected to be listed at end-October with an indicative initial public offering (IPO) price of RM3.80 per share, according to its circular.
MISC said it expected to receive gross proceeds of between RM1.04bil and RM1.16bil if the offer shares were sold at the IPO price.
The company said it expected to utilise the proceeds mainly for capital expenditure and working capital.
MISC said MMHE would receive gross proceeds of RM995.6mil if the shares were issued at the IPO price, and that it would be utilised for a yard optimisation programme, capital expenditure in Turkmenistan and listing expenses.
According to the circular, the yard in Pasir Gudang is currently undergoing a series of infrastructure upgrading works under the yard optimisation programme, which commenced in 2006 and is expected to be completed by 2014.
MISC said the increased activities in Turkmenistan required additional capital expenditure, subject to the approval of the MMHE board for the purchase of moveable heavy equipment.
Based on the IPO price, MMHE’s total market capitalisation is expected to be at RM6.08bil upon the proposed listing, according to the circular.
MMHE’s IPO will involve an offer for sale of 146 million existing shares to institutional investors. A total of 262 million new shares will also be issued, of which 184 million and 78 million shares will be set aside for Bumiputera and retail investors respectively. MISC said the IPO would boost the group’s marine and heavy engineering businesses.
At its EGM yesterday, shareholders approved the proposed listing of MMHE. The company declined to comment on the proceedings when approached by reporters.
But a shareholder revealed that MISC shareholders would get a 5% discount on MMHE’s IPO price.
