Bumitama IPO Warrants Listing at 9am Today

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Bumitama IPO Warrants Listing at 9am Today

kimeng

Publish date: Thu, 12 Apr 2012, 09:46 AM

Warrants Highlight

Bumitama IPO Warrants Listing at 9am Today

Macquarie is pleased to list the following new warrants this morning:

Code	Name	Type	Expiry	Exercise Price
P9EW	BumitamaMBeCW120702	Call	02-Jul-12	0.85
P9FW	BumitamaMBeCW120903	Call	03-Sep-12	1.00
P9CW	EzionHldMBeCW121002	Call	02-Oct-12	1.10

S’pore’s first sizeable IPO this year
With an anticipated market value of $1.31bn, Indonesian palm oil producer Bumitama Agri is Singapore’s first sizeable new listing on the SGX this year.

Priced at the top end of its $0.675 – $0.745 indicative range, Bumitama’s listing is expected to raise $243.9mn. At 74.5 cents, Bumitama’s shares are valued at a P/E ratio of 11 times, compared to peers First Resources’ 13 times and Golden Agri’s 12 times. According to CEO Gunawan Lim, the IPO was 31 times oversubscribed.

About Bumitama Agri
Bumitama is one of the youngest plantation companies in Indonesia. It owns 191,948 hectares of land, of which 37.9% is currently uncultivated and available for future planting. The weighted average age of the oil palm trees is about five years and only 28.1% of the planted area has reached the peak production age, thus offering growth potential. Bumitama expressed plans to increase their planted area by approximately 13,000 hectares per year over the next four years. Most of the IPO proceeds will be spent on capital expenditure for expansion and development of uncultivated land bank and plantations.

World demand for palm oil is forecasted to reach about 78mn metric tonnes in 2020, compared with 49mn metric tonnes consumed in 2011, according to the Oil World CD-Rom Data Base.

Last year, Bumitama announced a FY11 revenue of US$320mn and an adjusted net profit of US$67m.

Break—away stock Ezion Holdings
Breaking above the $1 mark last Thursday, Ezion Holdings went on to finish at its highest level is almost five years the following day on April 5 at $1.025. Ezion last traded at those levels in July 2007.

While the stock has retreated slightly since, the stock’s last close of $0.990 is still a 50% year to date increase, compared to the STI’s 11% gain this year. The company, which offers offshore marine logistics and support services as well as the chartering of strategic offshore assets, had on April 4 announced a four-year, $80mn contract to charter a service rig for an oil exploration project in Central America. This is Ezion’s fifth contract win for the year, bringing the company’s total contract win for the year to $437.5mn. Previous deals include the chartering of lift boats for oil projects in locations such as Myanmar and North America.

Singapore Market Wrap

Sea of Red in Singapore

29 out of 30 STI components ended in negative territory yesterday, as the index fell 1.1% day-on-day (dod) to 2,949.25. The index slid for the whole morning, halting its downward trend only after the European indices opened in the green.

June Call STI 3000MBeCW120629 (P8BW) exercise level 3,000.*
June Put STI 2900MBePW120629 (P8CW) exercise level 2,900.*

Longer dated Call STI 3100MBeCW130131@ (PA7W) exercise level 3,100.*
Longer dated Put STI 2800MBePW130131@ (PA8W) exercise level 2,800.*

Sakari tumbles on export ban fears
Yesterday, the Jakarta Post reported that the Indonesian government will not sell raw natural resources after 2014. All natural resources will need to be processed domestically before export. Sakari shares tumbled 3.2% to $2.14 on the back of the news.

Call SakariMBeCW120702 (PG4W) exercise price $2.20.*
Call SakariMBeCW120822 (P1WW) exercise price $2.70.*

CapitaLand dips below $3.00
Local property developer CapitaLand fell 2.6% yesterday to $2.96, back to its mid-March levels. Recent reports showed that Beijing homes fell 20.7% year-on-year as property developers offered deeper discounts to lure buyers. China is one of CapitaLand's core markets.

Call CapitalaMBeCW120702 (PB7W) exercise price $3.00.*
Put CapitalaMBePW121004 (P5OW) exercise price $3.00.*
Long Dated Call CapitalaMBeCW130603 (L0SW) exercise price $4.30.*

Overnight Market Wrap

Stocks Rebound, Oil Jumps

S&P500 halted its losing streak with a 0.7% rebound yesterday to 1,368.71. Alcoa, which reported its 1Q profit of US$94mn after Tuesday's trading hours, soared 6.2%.

Oil prices rose 1.6% to $102.70 per barrel on renewed Iran tensions. Yesterday, US Department of Energy reported that US stockpiles rose by 2.8bmn barrels, compared to analysts estimate of 2.2mn barrels.

Overnight Markets

Indices	Last	Change
STI	2946.44	-1.2%
HSI	20140.67	-1.1%
DJIA	12805.39	0.7%
S&P 500	1368.71	0.7%
Nasdaq	3016.46	0.8%

Corporate News

Corporate Announcements

Results Announcement
Tue 17 Apr: SGX 3Q12
Thu 19 Apr: Keppel Corp 1Q12
Wed 9 May: UOB 1Q12

Ex-Dividend Date
Wed 25 Apr: Keppel Corp ($0.26), SembMarine ($0.20)
Wed 26 Apr: STX OSV ($0.10)
Fri 27 Apr: OCBC ($0.15)
Mon 30 Apr: Cosco ($0.03), Golden Agri ($0.0184)
Fri 4 May: Wilmar ($0.031), IndoFood Agri ($0.003)
Mon 7 May: UOB ($0.40), CapitaLand ($0.08)
Wed 9 May: DBS ($0.28)

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