Scomi makes impressive debut


  • Business
  • Wednesday, 14 May 2003

BY IZWAN IDRIS

Tan Sri Asmat Kamaluddin speaking to reporters.

OIL and gas engineering specialist SCOMI GROUP BHD made an impressive debut on the KLSE second board yesterday, with its shares closing at RM2.01 – 63 sen or 46% higher than its initial public offering (IPO) price of RM1.38. 

The counter had opened at RM1.85, a 47 sen premium over its offer price.It was one of the best performing IPOs this year, matching that of Symphony House Bhd, which is controlled by Datuk Azman Yahya who, incidentally, is also a director and junior shareholder of Scomi. 

Scomi was the third most actively traded counter yesterday, with 6.7 million shares changing hands. Analysts said there was strong foreign institutional buying. 

Based on the closing price, Scomi's market capitalisation exceeds RM200mil, making it one of the biggest companies on the second board. Already, the company has indicated it has plans to migrate to the main board within a year. 

“We are delighted with the strong premium, which reflects the high confidence placed by the investing public in the company,'' chairman Tan Sri Asmat Kamaludin told reporters after the listing ceremony in Kuala Lumpur. 

He credited Scomi's strong showing to its solid fundamentals, rather than its well-connected board of directors. 

Asmat is the former secretary-general of the International Trade and Industry Ministry and sits on the boards of a number of large companies, while director Datuk Hamzah Bakar is a former senior vice-president of Petronas. 

“Boardroom personalities are not the major factors driving up the share price. Ultimately, investors would judge Scomi on its fundamentals and earnings'' Asmat said. 

Chief executive officer Shah Hakim Zain, who with Kamaluddin Abdullah are the controlling shareholders of Scomi, said the group was cautiously optimistic of its ability to meet the current-year profit forecast. 

“We are confident that Scomi would continue to perform better throughout the rest of the year. Historically, the second half of the year is better than the first half,'' Shah said. 

For the first quarter ended March 31, the company reported a 46% rise in net profit to RM3.8mil. Scomi has projected a net profit of RM18mil for the current fiscal year, versus RM15mil in 2002. 

The company is mainly involved in the provision of mud engineering services and equipment to the oil and gas industry – a highly specialised field. There are only 12 such companies in the world. 

Shah said the company was actively participating in various bidding exercises in the Middle East and North Africa. 

“At the same time we are also evaluating the possibility of expanding our services by offering complementary and integrated services such as in waste treatment and oil field equipment,'' he said. 

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