Govt Optimistic Petronas Chemicals Groups Growth Prospects
KUALA LUMPUR, Nov 2 – The government is optimistic about Petronas Chemicals Group Bhd’s growth prospects, both in expanding into more complex petrochemical products and supporting upstream and downstream industries, said Prime Minister Datuk Seri Najib Tun Razak.
“We have great faith and high expectations that Petronas will contribute to drive innovative new development and reinforce Malaysia’s reputation as one of Southeast Asia’s premier petrochemicals production hubs,” he said.
He said the listing of Petronas Chemicals Group, expected to be one of the largest ever undertaken in Southeast Asia, would contribute significantly to the expansion of Malaysia’s capital markets by increasing the liquidity needed to fuel economic growth.
Upon successful listing, he said, it would comprise a significant portion of the FTSE Bursa Malaysia KL Composite Index.
“By end of this year, the Petronas Group could collectively account for over 10 per cent of Bursa Malaysia’s total market capitalisation, and over 16 per cent of the FTSE Bursa Malaysia KL Composite Index,” he said when launching the group’s prospectus.
The text of his speech was read out by his deputy Tan Sri Muhyiddin Yassin.
The company’s initial public offering of up to 2.48 billion shares comprise an offer for sale of up to 1.78 billion existing shares and a public issue of 700 million shares to Malaysian and foreign institutional and selected investors at the institutional price.
Najib said the oil and gas industry comprised over 10 per cent of the national gross domestic product, making it one of the main contributors to Malaysia’s prosperity.
“Oil and gas are some of our nation’s most visible and valuable assets, which is why we have focused on this as one of the 12 National Key Economic Areas under the 10th Malaysia Plan,” he added.