KUALA LUMPUR: The listing of Gas Malaysia Bhd, originally planned for the current quarter, may be postponed to early next year as the company has yet to fulfill certain conditions set by the Securities Commission (SC), sources said.
The SC had on Oct 7 granted conditional approval for the proposed listing on the Main Market of Bursa Malaysia. Among the conditions is a requirement that the company executes a new gas supply agreement with Petroliam Nasional Bhd (Petronas).
Additionally, the terms and conditions of the new gas supply agreement must not have a material adverse impact on the operations and future profitability of Gas Malaysia.
“But an agreement has not been concluded with Petronas yet as the new agreement includes the provision for Gas Malaysia to set up a chain of petrol outlets to cater for vehicles utilising gas,” said a source.
According to a previous announcement by MMC Corp Bhd, one of the conditions stipulated by the SC is Gas Malaysia ensures that its petrol stations are not built on land that is not designated for the purpose and for the company to rectify any non-compliance within a year of SC’s approval.
MMC, which owns a 41.8% stake in Gas Malaysia, had said it was en route to list the subsidiary by year-end. This is dependent on fulfilling conditions set by the SC.
Towards this end, Gas Malaysia announced on Oct 19 that it had received the approval from the Economic Planning Unit for its listing, changes in shareholding structure and a proposed issuance of special redeemable preference shares to Petronas.
The company’s IPO comprises 333.84 million ordinary shares of 50 sen each. MMC officials had said the IPO could be set at RM2.20 per share.
“We think we are going to get that price for a few reasons, such as the company’s performance and by benchmarking it against other similar companies,” said an official at the MMC EGM on Oct 31.
The proposed listing of Gas Malaysia is one of the two IPOs to have received approvals from the SC in the second half this year.
iDimension Consolidated Bhd, which provides manufacturing software solutions, was listed on the ACE Market earlier this month. Its IPO consisted of 38.23 million new shares of 10 sen each, sold at an offer price of 38 sen, along with seven million shares via private placement. It had raised RM14.5 million from the exercise.
Following the listing, iDimension had announced a dividend and a bonus issue. Despite that, iDimension is trading at about 28 sen, lower than its IPO price.
This article appeared in The Edge Financial Daily, November 25, 2011.
The SC had on Oct 7 granted conditional approval for the proposed listing on the Main Market of Bursa Malaysia. Among the conditions is a requirement that the company executes a new gas supply agreement with Petroliam Nasional Bhd (Petronas).
Additionally, the terms and conditions of the new gas supply agreement must not have a material adverse impact on the operations and future profitability of Gas Malaysia.
“But an agreement has not been concluded with Petronas yet as the new agreement includes the provision for Gas Malaysia to set up a chain of petrol outlets to cater for vehicles utilising gas,” said a source.
According to a previous announcement by MMC Corp Bhd, one of the conditions stipulated by the SC is Gas Malaysia ensures that its petrol stations are not built on land that is not designated for the purpose and for the company to rectify any non-compliance within a year of SC’s approval.
MMC, which owns a 41.8% stake in Gas Malaysia, had said it was en route to list the subsidiary by year-end. This is dependent on fulfilling conditions set by the SC.
Towards this end, Gas Malaysia announced on Oct 19 that it had received the approval from the Economic Planning Unit for its listing, changes in shareholding structure and a proposed issuance of special redeemable preference shares to Petronas.
The company’s IPO comprises 333.84 million ordinary shares of 50 sen each. MMC officials had said the IPO could be set at RM2.20 per share.
“We think we are going to get that price for a few reasons, such as the company’s performance and by benchmarking it against other similar companies,” said an official at the MMC EGM on Oct 31.
The proposed listing of Gas Malaysia is one of the two IPOs to have received approvals from the SC in the second half this year.
iDimension Consolidated Bhd, which provides manufacturing software solutions, was listed on the ACE Market earlier this month. Its IPO consisted of 38.23 million new shares of 10 sen each, sold at an offer price of 38 sen, along with seven million shares via private placement. It had raised RM14.5 million from the exercise.
Following the listing, iDimension had announced a dividend and a bonus issue. Despite that, iDimension is trading at about 28 sen, lower than its IPO price.
This article appeared in The Edge Financial Daily, November 25, 2011.
