Markets

Malaysia's UMW Oil & Gas surges 10pc on market debut

Published November 1, 2013 Updated November 1, 2013 04:56am

KUALA LUMPUR: Shares in UMW Oil and Gas Corp. climbed 10 percent on their stock market debut Friday, after raising $740 million in Malaysia's largest initial public offering (IPO) this year.

The offshore and drilling services firm was trading at 3.09 ringgit in late morning on the Kuala Lumpur exchange, up from its 2.80 ringgit offer price.

UMW said it plans to use a major portion of the cash raised for acquisition, upgrading and maintenance of drilling rigs and other machinery.

Malaysia, Southeast Asia's third-largest economy, saw a flurry of big listings last year -- led by palm oil giant Felda Global Ventures, which raised $3.25 billion -- that helped its stock market become the world's fifth-largest for IPOs in 2012.

It has been relatively quiet this year owing to caution in the run-up to elections in May that were narrowly won by the country's long-ruling coalition.

However, in July, Malaysia-based airline AirAsia X listed on the Kuala Lumpur stock exchange after a $308.6 million IPO.

Leading Malaysian ports operator Westports Holdings followed last month after its IPO raised $640 million.