Time And Tide

MISC EXPECTS TO COMPLETE LISTING OF MSE IN FOURTH QUARTER

0 Comments | BERNAMA; Malaysian National News Agency, Jul 23, 2010

from BERNAMA, The Malaysian National News Agency KUALA LUMPUR, July 23 (Bernama) — MISC Bhd has proposed to list its wholly- owned subsidiary MSE Holdings Bhd (MHB) on the Main Market of Bursa Malaysia.

MHB holds a 100 per cent equity in Malaysia Marine and Heavy Engineering Sdn Bhd and the listing exercise is expected to be completed in the fourth quarter this year, said Maybank Investment Bank Bhd in a filing with Bursa Malaysia on behalf of MISC.

The MHB group is a leading Malaysian heavy engineering and marine services provider, focusing on the oil and gas sector.

The group offers a wide spectrum of engineering and construction, marine conversion and marine repair services from its yard in Pasir Gudang, Johor, and the yard it operates in Kiyanly, Turkmenistan.

MHB posted a pre-tax profit of RM377.206 million on revenue of RM6.147 billion for the financial year ended March 31, 2010, higher than the pre-tax profit of RM349.042 million on revenue of RM4.021 billion in the previous year and pre-tax profit of RM235.898 million on revenue of RM1.742 billion in the financial year ended March 31, 2008.

Maybank Investment Bank said MHB proposed to undertake several exercises to facilitate the proposed listing, including increasing the authorised share capital from 100 million shares of RM1 each to 5.0 billion shares of 50 sen each.

It also proposed a share split of its existing share of RM1.00 each into 50 sen each, resulting in the subdivision of every one existing share into two shares.

Maybank Investment Bank said MHB proposed a cash dividend payout of RM300 million to MISC, and folloiwng the exercise, a bonus issue of 1.305 billion shares on the basis of 40.245 bonus shares for every one MHB share, by way of capitalising RM652.78 million of its retained earnings.

Following the exercises, MHB will undertook the proposed initial public offering with proposed offer for sale of 146 million shares, representing 9.12 er cent of MHB’ enlarged and paid-up capital to Malaysian institutional and selected investors, and foreign institutional and selected investors outside the United States.

The price to be paid by the institutional investors will be fixed on the price determination date by way of a bookbuilding exercise, Maybank Investment Bank said.

MHB also proposed a public issue of 262 million, comprising 184 million shares offered to Bumiputera institutional and selected investors at the institutional price, and 78 million shares to MISC shareholders (24 million), Malaysian public (32 million) and eligible directors and employees (22 million) at a price equivalent to the issue price determined prior to prospectus launch or 95 per cent of the institutional price, whichever is lower.

Procceds from the offer for sale, which will go to MISC, will be utilised by it for capital expenditure and working capital, Maybank Investment Bank said
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