KUALA LUMPUR: MMC Corp Bhd is optimistic regarding the proposed listing of its subsidiary, Gas Malaysia Bhd, this year due to encouraging demand for Malaysian stocks and ample liquidity in the local market.
"Yes, we are quite confident that the listing (of Gas Malaysia) is timely as the market is there. We also have ample liquidity.
"Based on the feedback from Miti (Ministry of International Trade and Industry), Gas Malaysia stocks are oversusbcribed," said MMC group managing director Datuk Hasni Harun recently.
Gas Malaysia is slated to be traded on the Main Market of Bursa Malaysia in the second quarter of the year.
He said Malaysian stocks were currently on foreign investors' radar, although they were not that aggressive in buying the shares as they needed certainty on the impending 13th general election before making investment decisions.
"Based on the feedback from Miti (Ministry of International Trade and Industry), Gas Malaysia stocks are oversusbcribed," said MMC group managing director Datuk Hasni Harun recently.
Gas Malaysia is slated to be traded on the Main Market of Bursa Malaysia in the second quarter of the year.
He said Malaysian stocks were currently on foreign investors' radar, although they were not that aggressive in buying the shares as they needed certainty on the impending 13th general election before making investment decisions.
Hasni said he was confident that Gas Malaysia's initial public offering (IPO) would materialise soon as everything had been put in place.
"We are ready. In fact, all the Bumiputera shares have been allocated. They are just waiting for approval from the Securities Commission."
He also said MMC was bullish of Gas Malaysia's prospects as it was poised to deliver strong and sustainable performance, driven by continued demand from industrial customers.
"Gas Malaysia is the sole supplier of natural gas to the non-power sector and currently supplies energy to more than 700 industrial, 13,352 residential and 528 commercial customers in Peninsular Malaysia."
He said Gas Malaysia's steady cashflow and strong balance sheet with zero-gearing track record would attract good investor response for the IPO.
"It is expected to become a strong dividend-yielding stock," he said.
On competition from other players in the gas supply and distribution business, Hasni said he expected no new players except for Petroliam Nasional Bhd (Petronas).
"If they (Petronas) want to do their own business in the gas industry, they can but as a national oil company, they have a bigger agenda.
"For other players to come in, they have to apply for a licence and for those who want to import liquefied natural gas, they need high capex.
"An advantage for Gas Malaysia is that we have a ready pipeline network of about 1,800km to various industrial zones," he said.
Gas Malaysia's shareholders include Tokyo Gas, Mitsui & Co Holdings Sdn Bhd, Petronas Gas Bhd and MMC-Shapadu (Holdings) Sdn Bhd.
Source: Business Time
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