UpdateCorrected: Petronas Chemicals share price surges on Malaysia debut

26 November 2010 06:04  [Source: ICIS news]

Correction: In the ICIS news story headlined "Petronas Chemicals share price surges on Malaysia debut" dated 26 November 2010, please read in the third paragraph … PCG was up 25 sen or 5% at M$5.45 ($1.74) … instead of … PCG was up 26 sen or 5% at M$5.45 ($1.74)…. A corrected story follows.

(adds new share price, background)

Petronas twin towers in Kuala LumpurSINGAPORE (ICIS)--Petronas Chemicals Group (PCG) shares debuted strongly on the Malaysian stock exchange on Friday, with price jumping by as much as 10% from its initial public offering (IPO) price, underscoring the strong appetite for Asian big-capital stocks.

PCG’s $4.1bn (€3.1bn) IPO was the biggest to come out of Malaysia and out of southeast Asia to date, beating the $3.3bn offering of telecommunications firm Maxis, according to media reports.

At 13:24 hours Singapore time (05:24 hours GMT), PCG was up 25 sen or 5% at M$5.45 ($1.74), using M$5.20 as the base price.

PCG set its IPO price to institutional investors, which took up 88% of its IPO of 2.48bn shares, at M$5.20/share, while retail offerings of 293m shares were priced at a 3% discount to the set price.

PCG was off the intra-day high of M$5.72 but remained the most actively traded stock on Bursa Malaysia, with 470.17m shares changing hands.

The trading debutante comprises the 22 petrochemical-related businesses of state oil and gas firm Petroliam Nasional Bhd (Petronas).

Its operations cover olefins, polymers, fertilizers, methanol and other basic chemical and derivative products, based on PCG’s website.

Based on volumes, the company is the biggest producer of methanol and ethylene glycols in southeast Asia, according to its website.

The company’s IPO proceeds would be used for future expansion, which would include greenfield ammonia and urea projects off east Malaysia.

PCG would immediately qualify in the FTSE Bursa Malaysia Kuala Lumpur Composite Index (KLCI), comprising the 30 largest listed companies in terms of market capitalization, by the end of Friday’s trade.

The company recorded a M$814m net profit in the four months to July 2010, with revenues at M$4.22bn, according to its prospectus.

Malaysia, in a statement on Monday, had said that PCG would be a constituent of the index ahead of the regular semi-annual review of the list in December “as its market capitalisation is significantly large”.

PCG would be added to the KLCI with an investability weighting of 30%, displacing Berjaya Sports Toto in the index, the bourse operator said.

($1 = €0.75 /
$1 = M$3.13)

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By: Pearl Bantillo
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