Despite it being its golden goose and a listing would cause dilution, the government has said it would study the proposal, while investment advisers said a listing would offer many positives for the lacklustre local equity market.
PETRONAS is expected to post earnings of about RM100bil for financial year 2022 and RM100bil for FY23. A PETRONAS listing is expected to be priced at nine times to 10 times earnings, giving it a market capitalisation of RM900bil to RM1 trillion provided it has a dividend payout policy of 50%, giving the stock an attractive dividend yield of 5% to 5.55%.
In light of this, the listing on the local exchange will be positive but trigger changes in holdings by index-linked funds. Selling a piece of PETRONAS to foreign investors would also depend on shareholder returns as well as improvement in the ESG strategy, he said.
The Govt wont receive 100% of Petronas dividends thereafter. Now even with 100% , the Govt unable to balance