(KUALA LUMPUR) Bumi Armada Bhd received orders for about 25 times the stock it's selling to institutional investors in Malaysia's biggest initial public offering (IPO) this year, two people with knowledge of the matter said.
The sale to local and foreign institutions accounts for more than half of the IPO, with retail investors and indigenous institutions making up the rest.
The people, who asked not to be identified because the information is private, said demand from fund managers will probably allow Bumi Armada to sell shares at the top end of a range marketed to investors. The oil and gas services company controlled by Malaysian billionaire T Ananda Krishnan plans to raise as much as RM2.77 billion (S$1.13 billion), people familiar with the matter said on June 27.
Sales to institutional investors are scheduled to close tomorrow, according to Bumi Armada's offering prospectus.
Bumi Armada said on June 30 that it has lined up so-called cornerstone investors including Great Eastern Life Assurance (Malaysia) Bhd and Prudential Fund Management Bhd which will buy a combined 10.2 per cent of the shares.
The FTSE Bursa Malaysia KLCI Index has risen 7 per cent from its March 15 low this year.
Twelve of the 18 companies that began trading in Malaysia this year have advanced from their offer price.
Bumi Armada, which provides vessels and floating platforms used by the energy industry, is attempting Malaysia's largest IPO since Petronas Chemicals Group Bhd raised a record RM12.8 billion in November.
CIMB Investment Bank Bhd, Maybank Investment Bank Bhd, RHB Investment Bank Bhd, Credit Suisse Group AG and CLSA Asia-Pacific Markets are arranging Bumi Armada's IPO. -- Bloomberg
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