Petronas Chemicals, soon-to-be-listed arm of Petronas, plans to carry out selective acquisitions in the mid-to-long term.
Petronas Chemicals Group Bhd (PCGB) (6033), one of the largest petrochemicals producer in Southeast Asia, plans to grow by expanding its production capacity and carrying out selective acquisitions in the mid-to-long term.
PCGB is the soon-to-be-listed petrochemicals arm of Petroliam Nasional Bhd (Petronas).
"In the medium to longer term, we will look to expand our product portfolio and production capacity - including through the development of new production plants using gas and alternate types of feedstock - as well as potentially synergistic and prudent acquisitions to pursue growth," it said in its draft prospectus released yesterday.
It may consider opportunities outside Malaysia, it added.
PCGB, made up of 22 petrochemical-related companies within the Petronas group, has total assets of about RM27 billion as at end-March.
Its net profit fell by a quarter to RM2.6 billion in the financial year to March 31 compared with RM3.4 billion in the year before.
Revenue declined to RM12.2 billion from RM12.4 billion before.
Datuk Tengku Mahamad Tengku Mahamut, 56, a director of several companies within the Petronas group, has been named president and chief executive officer of PCGB.
PCGB is currently considering expanding its operations in Sabah and Sarawak to take advantage of the natural gas feedstock available in that region.
For instance, it may develop a world-scale greenfield ammonia and urea production facility there.
"This project is currently at a pre-feasibility study phase, and we expect to make a final decision in fiscal year 2012 whether to proceed with the investment," PCGB said.
On top of that, it also expects to get more closely involved with a greenfield project that Petronas is currently evaluating.
The project is to develop an integrated refinery and petrochemicals complex in Peninsular Malaysia, together with international partners, to produce products like naphtha that can be used as feedstock for petrochemical products.
PCGB's draft prospectus did not give details on the size of the listing, but it has been reported that it may raise about US$2 billion (RM6.24 billion) from the exercise.
PCGB is one of two Petronas subsidiaries slated for a listing on Bursa Malaysia this year, the other being Malaysian Marine and Heavy Engineering Sdn Bhd, which is expected to be listed next month.
CIMB Investment Bank Bhd was appointed as PCGB's principal adviser and managing underwriter, with Deutsche Bank AG and Morgan Stanley & Co helping as joint global coordinators and bookrunners.
