UpdatePetronas Chemicals shares close off highs on Malaysia debut

26 November 2010 11:41  [Source: ICIS news]

Petronas twin towers in Kuala Lumpur(adds PCG closing price, with recasts throughout)

SINGAPORE (ICIS)--Petronas Chemicals Group (PCG) shares closed 2.1% higher on its trading debut on Friday, but off highs, as Malaysian shares succumbed to profit-taking.

PCG surged by as much as 10% during the session but eventually settled at ringgit (M$) 5.31, up 11 sen, at the end of trading. The price change was based on the initial public offering (IPO) price of M$5.20 set for institutional investors.

Meanwhile, the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (KLCI) eased 4.44 points, or 0.30%, to close at 1,492.05.

PCG was the most actively traded stock on Bursa Malaysia, with 637m shares changing hands, indicating investors’ strong appetite for Asian big-capital stocks.

The company’s $4.1bn (€3.1bn) IPO was the largest 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.

In its IPO, 2.19bn shares were offered to institutional investors and 293m shares were allocated to retail investors.

The group 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, according to PCG’s website.

Based on production volumes, the company is the largest methanol and ethylene glycols maker in southeast Asia, according to the website.

Proceeds from PCG’s IPO would be used for future expansion, which would include greenfield ammonia and urea projects off east Malaysia.

PCG immediately qualifies as one of the 30 big-capital stocks that comprise the FTSE Bursa Malaysia KLCI.

Bursa 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%, dislodging Berjaya Sports Toto from the index, the bourse operator said.

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

($1 = €0.75, $1 = M$3.13)

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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By: Pearl Bantillo
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