IMHO, it is possible that the price may go south bound after UMW Holdings had distributed their UMWOG shares because approximately 450M UMWOG shares will be distributed to other shareholders (i.e. Non PNB + PNB unit trust). These new shareholders may not be interested in UMWOG shares in the first place or may not be willing to fork out more money for the rights thus may sell their UMWOG shares received from UMWH.
The free warrant is not much of a consolation. If everyone subscribe for their rights, there would be 1,513,400,000 warrant and even if PNB holds on to their warrant (689M), there would still be 825M warrant in the market. With so many sellers, maybe the warrant worth 1 to 2 sen only. If you have 100,000 shares now, you need to fork out RM84,000 for the RI and the consolation you get is 70,000 warrant worth 2 sen. Lagi baik buang longkang
If 'target ex-price' TERP is 39.5sen, the calculation of which is based on pre-announcement average market price of 66sen, then how would anyone buy now at above 66sen?
Must subscribe to rights share first. I think price will move after the rights issue is done. Prices may actually move above the targeted 39.5sen; if all the rigs are employed. And hopefully the loans will be retired using the proceeds from the rights issue. The warrants will be useful too.
1. Whatever contracts they have can always be suspended by their clients as and when they like. It happen in the past.
2. Even when rigs is expected to be fully utilised from July 17 onwards, the management can't answer if there will be further impairment or not for FY 2017.
KUALA LUMPUR: UMW Oil & Gas Corp Bhd (UMW-OG) is bidding for 33 jobs worth a combined value of RM3.2bil.
The oil and gas services provider said on Monday of the total jobs being tendered for its jack-up rigs, 20 were based overseas and 13 were local jobs.
According to UMW-OG president Rohaizad Darus, the company would likely achieve a utilisation rate of around 90% in the coming years based on the number of jobs being tendered.
He noted that with the two contracts UMW-OG just secured from Petronas Carigali Sdn Bhd worth US$34.81mil or RM151.07mil to provide services to its firm and optional wells, the company would achieve a utilisation rate of 100% by the second half of 2017.
The good news of umw og keep flowing recently but the stock price so stubborn to move up or down... No any sign of the price whether go to south or north
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nice1
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Posted by nice1 > 2017-05-09 14:22 | Report Abuse
pnb alone cant support the price