E.A. Technique IPO

Opening of application24/11/2014
Closing of application01/12/2014
Balloting of applications03/12/2014
Allotment of IPO shares to successful applicants09/12/2014
Tentative listing date11/12/2014

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INITIAL PUBLIC OFFERING (“IPO”) OF 129,000,000 ORDINARY SHARES OF RM0.25 EACH IN E.A. TECHNIQUE (“SHARE(S)”) IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR THE ENTIRE ENLARGED ISSUED AND PAID-UP ORDINARY SHARE CAPITAL OF E.A. TECHNIQUE ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING:-

(A) A PUBLIC ISSUE OF 114,000,000 NEW SHARES (“ISSUE SHARE(S)”) IN THE
FOLLOWING MANNER:-

(I) 25,200,000 ISSUE SHARES MADE AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC AT AN ISSUE PRICE OF RM0.65 PER ISSUE SHARE (“IPO PRICE”), PAYABLE IN FULL UPON APPLICATION;

(II) 78,800,000 ISSUE SHARES MADE AVAILABLE FOR APPLICATION BY WAY OF PRIVATE PLACEMENT TO INSTITUTIONAL AND SELECTED INVESTORS AT THE IPO PRICE, PAYABLE IN FULL UPON APPLICATION; AND

(III) 10,000,000 ISSUE SHARES MADE AVAILABLE FOR APPLICATION BY OUR ELIGIBLE DIRECTORS AND EMPLOYEES OF E.A. TECHNIQUE AND ITS SUBSIDIARY AT THE IPO PRICE, PAYABLE IN FULL UPON APPLICATION;

(B) AN OFFER FOR SALE OF 15,000,000 EXISTING SHARES, MADE AVAILABLE FOR APPLICATION BY WAY OF PRIVATE PLACEMENT TO IDENTIFIED INVESTORS AT THE IPO PRICE, PAYABLE IN FULL UPON APPLICATION.

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KUALA LUMPUR: E.A. Technique (M) Bhd, which is en route to a listing on the Main Market of Bursa Malaysia, expects to raise RM74.1 million through the public issue of its initial public offering (IPO).

E.A. Technique's IPO entails an offer for sale of 15 million existing shares and a public issue of 114 million new shares, of which 25.2 million new shares will be made available to the Malaysian public at an issue price of 65 sen per share.

Upon listing, the group will have a market capitalisation of RM327.6 million.

Of the RM74.1 million proceeds raised, RM30 million will be used for the repayment of bank borrowings, RM29.2 million for capital expenditures and RM9.9 million for working capital.

The company is expected to be listed on the local bourse on December 11.

Despite concerns over falling global oil prices, managing director Datuk Ir. Abdul Hak Amin believes the company would be "well insulated" as it does not solely depend on the oil and gas business, but is rather a diversified entity that is also involved in the shipyard and port operations.

Speaking at a press conference in conjunction with the company's prospectus launch here yesterday, he added that the group will be able to weather any downturn with the support of its long-term contract.

E. A.Technique is a ship-owner and operator of marine vessels for the transportation and offshore storage of oil and gas, and provider of port marine services. Its wholly-owned subsidiary Johor Shipyard and Engineering Sdn Bhd is involved in shipbuilding, ship repair and minor fabrication.

It operates a total of 31 marine vessels, of which 22 vessels are owned by the company while the remaining 9 vessels are chartered in from external parties.
Abdul Hak said the group plans to acquire six more new vessels namely, two fast crew boats, three harbour tugboats and a floating storage and offloading (FSO) vessel.

On its shipbuilding facilities expansion plan in Hutan Melintang, Perak, he said it's still under construction and is targeted for completion by the end of 2015. The group has earmarked RM10 million from the IPO proceeds to part finance the construction of the dry dock.

As at October 31, the group's order book stood at RM830.7 million, with jobs to keep it busy till 2025.

According to the prospectus, Kulim (Malaysia) Bhd's indirect interest in E.A. Techniques through Sindora Bhd, will be pared down from 65.4% to 50.6% upon listing.

For the financial year ended December 31, 2013, E.A. Techniques posted a net profit of RM19.45 million, an increase of 2.86% compared with RM18.91 million in the previous corresponding period.

However, for the five-month period ended May 31, 2014, its net profit was some 88.23% lower to RM5.26 million, in the absence of a gain on disposal amounting to RM37.5 recorded in the same period, the year before.

Source : The Sun Daily