KUALA LUMPUR: Bumi Armada closed 1.94% or eight sen lower to RM4.05 yesterday on a volume of 3.98 million shares after a moratorium on its cornerstone investors was lifted last Saturday.
Analysts said the decline was due to profit taking following the expiration of a six-month moratorium which had restricted cornerstone investors from selling the stock.
For its IPO, Bumi Armada managed to lock in cornerstone investors, who paid the listing price but received a predetermined amount of shares and were subject to a six-month lock-up period. According to analysts, cornerstone investors held around 10% stake in Bumi Armada.
The cornerstone investors are state-controlled unit trust outfit Permodalan Nasional Bhd and insurance outfits Great Eastern Life Assurance (M) Bhd and Prudential Assurance (M) Bhd.
Bumi Armada made its debut on July 21 last year and its shares are now trading at a 33.7% premium to the IPO price of RM3.03. After closing at RM4.14 on debut, the stock gradually fell to the RM3.20 level in September last year and has since been on an upward trend.
Analysts reported that the expiration of the moratorium would be a good opportunity for investors to buy into the company.
Research houses HwangDBS Vickers Research and BIMB Securities Research are expecting Bumi Armada to secure a risk service contract (RSC) for Petroliam Nasional Bhd’s (Petronas) marginal oil fields this year, given its track record and synergistic oil and gas services.
According to Bloomberg, there are seven “buy” calls for Bumi Armada ranging from CLSA’s RM4 target price to AmResearch’s RM5.05.
There are four “hold” from RM3.55 to RM4, and two “sell” recommendations with valuations of RM3.16 and RM3.45.
On Jan 16, Bumi Armada announced that its subsidiary, Bumi Armada Navigation Sdn Bhd, was awarded a four-year charter and operations contract (with an extension of a further four years) worth RM155 million from Petrleo Brasileiro SA, a Brazilian oil and gas company, for its anchor handling towing support vessel Armada Tuah 102.
Analysts said the decline was due to profit taking following the expiration of a six-month moratorium which had restricted cornerstone investors from selling the stock.
For its IPO, Bumi Armada managed to lock in cornerstone investors, who paid the listing price but received a predetermined amount of shares and were subject to a six-month lock-up period. According to analysts, cornerstone investors held around 10% stake in Bumi Armada.
The cornerstone investors are state-controlled unit trust outfit Permodalan Nasional Bhd and insurance outfits Great Eastern Life Assurance (M) Bhd and Prudential Assurance (M) Bhd.
Bumi Armada made its debut on July 21 last year and its shares are now trading at a 33.7% premium to the IPO price of RM3.03. After closing at RM4.14 on debut, the stock gradually fell to the RM3.20 level in September last year and has since been on an upward trend.
Analysts reported that the expiration of the moratorium would be a good opportunity for investors to buy into the company.
Research houses HwangDBS Vickers Research and BIMB Securities Research are expecting Bumi Armada to secure a risk service contract (RSC) for Petroliam Nasional Bhd’s (Petronas) marginal oil fields this year, given its track record and synergistic oil and gas services.
According to Bloomberg, there are seven “buy” calls for Bumi Armada ranging from CLSA’s RM4 target price to AmResearch’s RM5.05.
There are four “hold” from RM3.55 to RM4, and two “sell” recommendations with valuations of RM3.16 and RM3.45.
On Jan 16, Bumi Armada announced that its subsidiary, Bumi Armada Navigation Sdn Bhd, was awarded a four-year charter and operations contract (with an extension of a further four years) worth RM155 million from Petrleo Brasileiro SA, a Brazilian oil and gas company, for its anchor handling towing support vessel Armada Tuah 102.
