ASEAN KEY DESTINATIONS
Malaysia's Petronas Chem IPO to debut
It is set to debut at about RM5.50 per share, surpassing Maxis Bhd's, which fetched a premium of nine per cent over the indicative price of RM5 (RM5.46).
It may also overlap with American International Group's listing of its Asian life insurance business, AIA, in a deal worth more than US$15 billion.
The stockbroking industry is watching and waiting anxiously for the listing this Friday. PCG has been priced at RM5.20 apiece for institutional investors and RM5.04 for retailers.
The listing involves the sale of 2.48 billion shares. The IPO raised over US$4.2 billion and this comes at a point in time when Asian capital markets are enjoying significant influx of liquidity.
Analysts said the listing would give a definite boost to the local bourse's standing among the emerging markets and further internationalise the stock market.
RAM Holdings Bhd's group chief economist, Dr Yeah Kim Leng, said the listing would benefit the exchange as it would add immense liquidity and enhance Malaysia's attractiveness for foreign investors, given Petroliam Nasional Bhd's (Petronas) reputation as a Fortune 500 company and a major player in the petrochemical industry.
This should give a boost to Bursa Malaysia Kuala Lumpur Composite Index, he said.
Yeah said attracting foreign investors was a double-edged sword. "When we attract foreign investors they will also take flight when they sense vulnerabilities, slippages or slide in the economy.
"The key is to ensure that the equity market is built on solid fundamentals, that is, the listed companies are well-run and the industries they are in are thriving in a well-managed and robust economy with level-playing field for local and foreign investors," he told Bernama here today.
Recently, Prime Minister Datuk Seri Najib Tun Razak met top fund managers after delivering a keynote address on Malaysia's attributes as an investment destination for equity and capital market investments in Hong Kong.
MIDF Research senior analyst, Syed Muhammed Kifni Syed Kamaruddin, said PCG was a credible investible option in the eyes of the international investment community and was expected to rank among the top five in terms of market cap.
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