KUALA LUMPUR: Petronas Chemicals Group Bhd’s initial public offer of RM41.6 billion (US$13.4 billion) is the largest in Malaysia and Southeast Asia based on the institutional price of RM5.20 per share which was fixed on Friday, Nov 12 after the completion of the book-building exercise.
Petronas Chemicals, in announcing the final pricing of its landmark initial public offering, said there was strong demand from both Malaysian and international investors.
“The institutional offering (excluding the offering to cornerstone investors and Bumiputera investors approved by Ministry of International Trade and Industry) attracted orders of approximately RM92.6 billion (US$29.7 billion),” it said.
The shares offered under the institutional offering through the bookbuilding exercise, MITI and cornerstone tranches will raise RM11.4 billion (US$3.7 billion).
Petronas Chemicals said the retail offering of 293.0 million existing shares attracted applications with a value of RM3.7 billion (US$1.2 billion) for 729.0 million shares, which represents a subscription rate of 2.5 times.
It said the institutional, cornerstone and Ministry of International Trade and Industry tranches were priced at RM5.20 per share while the retail tranche price has been fixed at RM5.04 per share.
The company, a subsidiary of Petroliam Nasional Bhd, will be included as a component of the FTSE Bursa Malaysia KLCI. “The IPO of Petronas Chemicals is the largest IPO ever in Malaysia and in South East Asia and will add further depth to the Malaysian equity market,” it said.
The IPO comprised of 2.48 billion shares, or 31% of Petronas Chemicals, of which 700 million are new shares and 1.78 billion are existing shares being offered by Petronas. There is an over-allotment option of up to 372 million shares representing up to 15% of the total number of IPO shares.
Subject to any exercise of over-allotment option, the total amount of funds raised is expected to be RM12.8 billion (US$4.1 billion), of which RM3.6 billion and RM9.2 billion will accrue to the company and Petronas respectively.
“The institutional offering book received overwhelming demand from global institutional investors.
“Two cornerstone investors (Employees Provident Fund and Kumpulan Wang Persaraan (Diperbadankan)) have subscribed for an aggregate of 445 million shares representing approximately 5.6% paid up capital of Petronas Chemicals,” it said.
Petronas Chemicals chairman Datuk Wan Zulkiflee Wan Ariffin said the announcement marked an important milestone for the company.
“We are delighted with the investors’ response to the offering. We have had very engaging interactions with investors and the bookbuilding exercise has attracted significant interest from various types of investors globally,” he said.
The company is due to list its shares on the Main Market of Bursa Malaysia on Nov 26.
CIMB Investment Bank Bhd acted as the principal adviser for the IPO. CIMB, together with Deutsche Bank AG, Hong Kong Branch and Morgan Stanley & Co. International plc., acted as joint global coordinators and joint bookrunners for the institutional offering.