The document provides information on listings and IPOs of mining and oil & gas companies on Bursa Malaysia. It notes that while there are a number of non-listed mining companies in Malaysia, there are only a few listed mining companies. In contrast, there are over 20 listed oil & gas companies focused on exploration and production as well as support services. Several of the largest listed oil & gas companies are discussed in terms of their market capitalization and share price performance over the past 5 years. The requirements for listing on Bursa Malaysia's Main Market and alternative ACE Market are summarized. A new listing structure, the Special Purpose Acquisition Company (SPAC), is also introduced.
The document provides information on listings and IPOs of mining and oil & gas companies on Bursa Malaysia. It notes that while there are a number of non-listed mining companies in Malaysia, there are only a few listed mining companies. In contrast, there are over 20 listed oil & gas companies focused on exploration and production as well as support services. Several of the largest listed oil & gas companies are discussed in terms of their market capitalization and share price performance over the past 5 years. The requirements for listing on Bursa Malaysia's Main Market and alternative ACE Market are summarized. A new listing structure, the Special Purpose Acquisition Company (SPAC), is also introduced.
The document provides information on listings and IPOs of mining and oil & gas companies on Bursa Malaysia. It notes that while there are a number of non-listed mining companies in Malaysia, there are only a few listed mining companies. In contrast, there are over 20 listed oil & gas companies focused on exploration and production as well as support services. Several of the largest listed oil & gas companies are discussed in terms of their market capitalization and share price performance over the past 5 years. The requirements for listing on Bursa Malaysia's Main Market and alternative ACE Market are summarized. A new listing structure, the Special Purpose Acquisition Company (SPAC), is also introduced.
The document provides information on listings and IPOs of mining and oil & gas companies on Bursa Malaysia. It notes that while there are a number of non-listed mining companies in Malaysia, there are only a few listed mining companies. In contrast, there are over 20 listed oil & gas companies focused on exploration and production as well as support services. Several of the largest listed oil & gas companies are discussed in terms of their market capitalization and share price performance over the past 5 years. The requirements for listing on Bursa Malaysia's Main Market and alternative ACE Market are summarized. A new listing structure, the Special Purpose Acquisition Company (SPAC), is also introduced.
Feizal Mustapha Executive Director, Advisory BDO Malaysia
21 August 2013
Asian Mining and Energy Investment Forum 2013
Shangri-La Hotel, Kuala Lumpur
Mining and Oil & Gas Listings on Bursa Malaysia
Listed Mining Companies Malaysia Smelting Corporation Bhd On 23 July 2013, Kinsteel Bhd obtained exclusive rights with KDYMM Sultan of Pahang to carry out mining operation of all types of iron ore and other minerals at Kuala Lipis
20
Perwaja Holdings Bhds mining venture is still pending
the final official award of iron ore mining concession in Bukit Besi from the Terengganu state government Previous listed mining companies that have changed their core business:
Listed Oil & Gas Companies
Selangor Dredging Bhd
Kuchai Development Bhd
MMC Corporation Bhd
Petaling Tin Bhd
Exploration & Production
Support Services (engineering, procurement, offshore drilling, equipment etc) 24 companies Shell Refining Company (Federation of Malaya) Bhd - one of the few listed in 1960s On 29 July 2013, UMW Oil & Gas Corporation Bhd received approval to list Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 2
Mining and Oil & Gas Listings on Bursa Malaysia
(Contd) No. of New IPOs for Oil & Gas Related Companies 8 6
8 5
4 2
Source: Bloomberg Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 3
No. of New IPOs
2
Dearth of Mining Companies?
There are many non-listed mining companies Iron Ore
Tin
Gold
Coal
Ibam Mining Sdn Bhd
Tajau Makmur Sdn Bhd Vetill Minerals Sdn Bhd
Terengganu Anshan Iron & Steel Sdn Bhd
HWG Tin Mining Sdn Bhd (part of Ho Wah Genting Bhd: Bursa) S.E.K. (M) Sdn Bhd Rahman Hydraulic Tin Sdn Bhd (part of Malaysia Smelting Corporation Bhd: Bursa) Raub Australian Gold Mining Sdn Bhd (part of Peninsular Gold Ltd: London AIM) Segar Padu (M) Sdn Bhd
Specific Resources Sdn Bhd Pasir Emas Mining Sdn Bhd
Genesis Force Sdn Bhd
Luckyhill Mining Sdn Bhd
Copper Malaco Mining Sdn Bhd
* The above list is non-exhaustive Source: http://malaysianminerals.com Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 4
On the Other Hand, Listed Oil & Gas Companies
Exploration & Production
Support Services
20
Petronas Gas Bhd
Petronas Dagangan Bhd
Gas Malaysia Bhd
SapuraKencana Petroleum Bhd
Shell Refining Company
(Federation of Malaya) Bhd
Dialog Group Berhad
RM 438.5 - 41,395.1 mil
RM 58.6 - 28,492.3 mil
19.6 28.9
5.1 - 202.9
No. of companies* Top 3 companies
Market Capitalisation P/E Ratio
* No. of companies are non-exhaustive
Source: Bloomberg
Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 5
Top Listed Oil & Gas Companies
5-year Share Price Performance 35
Share Price (RM)
30 25 20 15 10 5 0
As at 12/8/2013 Petronas Dagangan Bhd RM28.68 Petronas Gas Berhad RM20.92 Shell Refining Co. (Federation of Malaya) Bhd RM8.25 SapuraKencana Petroleum Bhd RM3.73 Gas Malaysia Bhd RM3.361 Dialog Group Bhd RM2.89
Source: Bloomberg Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 6
Top Listed Oil & Gas Companies (Contd)
As at 12/8/2013 5-year PE Ratio Performance Dialog Group Bhd 40
35.77
35
SapuraKencana Petroleum Bhd 35.59
PE Ratio
30 25 20 15 10
Petronas Dagangan Bhd
34.39 Petronas Gas Berhad 28.91 Gas Malaysia Bhd 25.85
5 0
Source: Bloomberg Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 7
Shell Refining Co.
(Federation of Malaya) Bhd 25.12 (31/12/2011)
Mid-Size Listed Oil & Gas Companies
5-year Share Price Performance 6
Share Price (RM)
As at 12/8/2013 Dayang Enterprise Holdings Bhd RM4.80
Uzma Berhad RM4.00
Deleum Berhad RM3.79
2 1 0
Source: Bloomberg Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 8
Alam Maritime Resources Bhd RM1.49 Handal Resources Bhd RM0.54
Mid-Size Listed Oil & Gas Companies (Contd)
5-year PE Ratio Performance As at 12/8/2013 50 45 Handal Resources Bhd 28.42
PE Ratio
40 35
Dayang Enterprise Holdings Bhd 18.23
30 25
Uzma Berhad 17.37
20 15
Alam Maritime Resources Bhd 15.68
10 5 0
12/1/2008
12/1/2009
12/1/2010
12/1/2011
Source: Bloomberg Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 9
12/1/2012
Deleum Berhad 13.77
Overview of Bursa Malaysia
KLCI Index No. of sectors
14
No. of listed co.
(as at 12/8/13)
912
Market Capitalisation (as at 12/8/13) Top 5 largest market capitalisation listed co. (as at 12/8/13)
Hotel Property Plantation Mining REITs Closed-end Fund SPAC
b b b b b
Local Retail 33.75%
Local Institutional
23.50%
42.39%
KLCI Index 10-year Trend from 13 August 2003 to 12 August 2013
1,784.57
Source: Bloomberg and Market Statistic, Bursa Malaysia
Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 10
Foreign Institutional Foreign Retail,
0.36%
Value Proposition of Bursa Malaysia for Mining and
Oil & Gas Companies Benefits of Listing
Access to Capital / Funds Facilitate Growth Enhance Credibility
Attractive valuations in PE Exchange
Average PE
No. of listed Oil
& Gas Companies
PE (Oil & Gas
Companies)
Bursa Malaysia
16.46
24
4.5 204.6
Singapore Exchange
13.01
35
2.8 76.6
Hong Kong Stock Exchange
10.39
33
1.2 47.1
Source: Bloomberg as at 16 Aug 2013
Ease of fund raising from local and foreign investors
Cost effective listing market
- Professional fees to IB and advisers - Underwriting, placement & brokerage fees - Regulatory fees
Enhance Profile and
Visibility
Incentive for Employees Widen Shareholder / Investor Base
SC: Processing fee of RM80k + 0.05% of total market value of
listed securities (Max RM800k) Bursa : Listing fees of 0.01% of total market value of listed securities (Max RM200k for Main Market / RM20k for ACE Market)
A liquid and well regulated secondary market
Bursa Malaysia listings open to domestic and international companies
Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 11
Routes to Listing on Bursa Malaysia
Listing on Bursa Malaysia
Main Market
IPO Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 12
ACE Market
RTO / Back door listing
Listing Requirements - Main Market
Quantitative
Qualitative
Profit Test
- Cumulative profit after tax (PAT) of 3
5 years of at least RM20 mil
- Most recent PAT of at least RM6 mil
Market Capitalisation Test - Total market capitalisation of at least RM500 mil - Generated at least 1 year operating revenue Infrastructure Project Corporation Test - Must have right to build & operate a project of at least RM500 mil - Government/State agency awarded license with period of at least 15 years
Identifiable core business with healthy
growth prospect Strong corporate governance, particularly on BOD
Experienced management with
continuity of at least past 3 years
Satisfactory financial performance for
past 3 5 years
Sufficient working capital for at least
12 months
No conflict of interest
RTO / Back door listing subject to similar IPO requirements
Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 13
Listing Requirements - ACE Market
Quantitative
Qualitative
No minimum operating track
record or profit requirement
Identifiable core business with healthy
growth prospect
Sponsorship is required for at
least 3 years post listing
Strong corporate governance,
particularly on BOD
Sufficient working capital for at least
12 months
No conflict of interest
RTO / Back door listing subject to similar IPO requirements
Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 14
Special Purpose Acquisition Company (SPAC)
New Alternative Structure for Listing
A SPAC is a corporation formed by private individuals to
facilitate investments through an IPO on Main Market of Bursa Malaysia
The proceeds from the IPO are used to buy one or more assets / businesses / companies (defined as Qualifying Acquisition) within a pre-determined period
Upon completion of the Qualifying Acquisition, the SPAC is
transformed from a cash company into an operating listed company with an underlying business As a SPAC, the focus is on the management team. SPAC investors essentially rely on the competencies, reputation and past performance of the management team as a forecast of how the SPAC might perform.
Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 15
Process and Requirements of SPAC
Listed on Main Market of Bursa Malaysia
SPAC Create a SPAC
Max of 36 months from listing
Founder group of individuals, with senior management level of business and public company experience, holding min 10% in the SPAC Founders put in seed capital, with investments by initial investors Min RM150m to be raised from public through IPO, 90% of which must be put in trust account
Operating Company Qualifying Acquisition Management cannot vote 75% approval threshold by shareholders Approval by SC For more than one acquisition, SPA of each must be interconditional and completed simultaneously
Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 16
Normal listed company
SPAC Listings so far
2 mining SPACs are awaiting consideration of SC
(i.e. Australaysia Resources & Minerals Bhd and Terragali Resources Bhd)
Hibiscus Petroleum Berhad
Cliq Energy Berhad
Sona Petroleum Berhad
25 July 2011
10 April 2013
30 July 2013
IPO price
RM 0.75
RM 0.75
RM 0.50
Par value
RM 0.01
RM 0.01
RM 0.01
Funds raised
RM234 mil
RM364.4 mil
RM550 mil
12/8/13 Share Price Warrant
1.48 0.965
Listing Date
Share & Warrant Movement Share Warrant
2.5 2 1.5 1 0.5 0
Completion of QA on 18/4/12 ~ RM2.01 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0
Approval of QA on 10/2/12 ~ RM1.46 Listings and IPOs on Bursa Malaysia for Mining and Oil and Gas Companies Page 17
OCS GROUP LIMITED - Leading U.K. Facilities Management OCS Group Acquires Singapore's Don Thaker Group To Add 1,000 Jobs in Singapore in Next Three Years
OCS GROUP LIMITED - Leading U.K. Facilities Management OCS Group Acquires Singapore's Don Thaker Group To Add 1,000 Jobs in Singapore in Next Three Years
