Summary of the Deal – UMW O&G 24 Oct 13
October 24, 2013
by marketdecoder
UMW Oil & Gas, UMWOG.MK, listing on Friday next week, 1st Nov. Mkt cap US$1.9m. Raising RM2.36b / US$745m. Priced @ RM2.80, top end.
Key Drivers for UMWOG:
* Currently, there are 17 jackup rigs operating in Malaysia. Only 2 of which are locally owned (both by UMWOG). 12 of the 17 rig contracts expire over the next 15 months. In prime position to benefit from Petronas’ growing preference for local rig owners.
* Co to benefit from Petronas RM300b capex 2011-2015
* Regionally, growth potential in Vietnam where it already has a rig working for Hoang Long. Other aggressive growth mkts: Indonesia, Philippines & Myanmar.
* Assets: UMWOG’s young jackup fleet key for marketability. Co’s fleet averages 2yrs old vs industry average >15yrs old.
* Rates: Jackup date rates to stay elevated. Shortage in market for quality, younger rigs which UMWOG has supply.
* Orderbook: Stands at RM1.47b, expected to increase securing contract for ‘Naga 5’ mid 2014.
* 60% allocated to purchase drilling rigs + hydraulic workover units.
* UMW Holdings, UMWH.mk, will remain parent co with 61% stake
* IPO said to be 55x oversubscribed by institutional & 23x over by retail.
* Up to 17 cornerstones = 61% of the institutional tranche.
Market Decoder 
Summary of the Deal – UMW O&G 24 Oct 13
October 24, 2013 by marketdecoder Leave a comment
UMW Oil & Gas, UMWOG.MK, listing on Friday next week, 1st Nov. Mkt cap US$1.9m. Raising RM2.36b / US$745m. Priced @ RM2.80, top end.
Key Drivers for UMWOG:
* Currently, there are 17 jackup rigs operating in Malaysia. Only 2 of which are locally owned (both by UMWOG). 12 of the 17 rig contracts expire over the next 15 months. In prime position to benefit from Petronas’ growing preference for local rig owners.
* Co to benefit from Petronas RM300b capex 2011-2015
* Regionally, growth potential in Vietnam where it already has a rig working for Hoang Long. Other aggressive growth mkts: Indonesia, Philippines & Myanmar.
* Assets: UMWOG’s young jackup fleet key for marketability. Co’s fleet averages 2yrs old vs industry average >15yrs old.
* Rates: Jackup date rates to stay elevated. Shortage in market for quality, younger rigs which UMWOG has supply.
* Orderbook: Stands at RM1.47b, expected to increase securing contract for ‘Naga 5’ mid 2014.
* 60% allocated to purchase drilling rigs + hydraulic workover units.
* UMW Holdings, UMWH.mk, will remain parent co with 61% stake
* IPO said to be 55x oversubscribed by institutional & 23x over by retail.
* Up to 17 cornerstones = 61% of the institutional tranche.
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