ONLY WORLD GROUP HOLDINGS BERHAD IPO

RM0.88.

Stock code stock name OWG stock.

Opening of application26/11/2014
Closing of application05/12/2014
Balloting of applications09/12/2014
Allotment of IPO shares to successful applicants15/12/2014
Tentative listing date18/12/2014

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PUBLIC ISSUE OF 56,408,900 NEW ORDINARY SHARES OF RM0.50 EACH IN ONLY WORLD GROUP HOLDINGS BERHAD AT AN ISSUE PRICE OF RM0.88 PER SHARE PAYABLE IN FULL ON APPLICATION COMPRISING:

(l) 9,250,000 NEW ORDINARY SHARES OF RM0.50 EACH AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC;

(ll) 4,000,000 NEW ORDINARY SHARES OF RM0.50 EACH AVAILABLE FOR APPLICATION BY THE ELIGIBLE DIRECTORS, EMPLOYEES AND OTHER PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF OUR GROUP;

(lll) 18,500,000 NEW ORDINARY SHARES OF RM0.50 EACH AVAILABLE FOR APPLICATION BY WAY OF PRIVATE PLACEMENT TO BUMIPUTERA INSTITUTIONAL AND SELECTED INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY, MALAYSIA; AND

(lV) 24,658,900 NEW ORDINARY SHARES OF RM0.50 EACH AVAILABLE FOR APPLICATION BY WAY OF PRIVATE PLACEMENT TO SELECTED INVESTORS,

IN CONJUNCTION WITH OUR LISTING ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD

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KUALA LUMPUR:  Only World Group Bhd (OWG), en route to listing on Bursa Malaysia, plans to raise RM50 million from its initial public offering (IPO).

OWG managing director and chief executive officer Datuk Richard Koh Cheng Keong said of the RM50 million, RM30 million will be used to refurbish the Komtar building in Penang, RM13 million for business expansion, RM2 million for working expenses and the balance as listing cost.

He was speaking after OWG’s prospectus launch, here, yesterday.

The IPO entails a public issue of 56.408 million new shares of 50 sen each at an offer price of 88 sen a share. It  includes 9.25 million new shares for the Malaysian public and four million new shares for eligible directors and employees.

Another 18.5 million new shares will be placed out to approved Bumiputera investors while the remaining 24.658 million new shares are for selected investors.

OWG is scheduled to be listed on December 18.

On the progress of the Komtar building refurbishment, Koh said the face-lifting cost was estimated at RM30 million, of which renovation cost for the top five levels was RM6 million.

“It is more than halfway completed. We hope to wrap it up by the third quarter of next year,” he said.

Established in 1973, OWG is a leisure and hospitality services provider that incorporates the operations of food and services outlets, water amusement parks and family attractions.

Its main income is from its brand restaurants such as Only Mee Fresh Noodles, Shanghai 10, Noodle & Lok Lok and QiQi Taiwan Cuisine.

These food and beverage outlets are predominantly located at the main hotels in Genting Highlands.

OWG also operates two franchised Marrybrown restaurants at two hotels in Genting Highlands.

New Straits Time online 27 nov 2014

KRONOLOGI ASIA BERHAD IPO

Stock code stock name Krono.
RM0.29.

Opening of application27/11/2014
Closing of application04/12/2014
Balloting of applications08/12/2014
Allotment of IPO shares to successful applicants10/12/2014
Tentative listing date15/12/2014

INITIAL PUBLIC OFFERING IN CONJUNCTION WITH THE LISTING OF KRONOLOGI ASIA BERHAD (“KRONOLOGI” OR “COMPANY”) ON THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING PUBLIC ISSUE OF 59,247,000 NEW ORDINARY SHARES OF RM0.10 EACH (“SHARES”) IN THE FOLLOWING MANNER:-

• 4,739,500 NEW SHARES AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC;

• 7,109,500 NEW SHARES AVAILABLE FOR APPLICATION BY THE ELIGIBLE DIRECTORS, EMPLOYEES AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF KRONOLOGI ASIA BERHAD GROUP; AND

• 47,398,000 NEW SHARES BY WAY OF PLACEMENT TO IDENTIFIED INVESTORS;

AT AN ISSUE PRICE OF RM0.29 PER SHARE, PAYABLE IN FULL UPON APPLICATION

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KUALA LUMPUR, Nov 27 — Kronologi Asia Bhd aims to raise RM17.18 million from its initial public offering (IPO) on the ACE Market of Bursa Malaysia, with an expected listing date of December 15. The Singapore-based company, specialising in enterprise data management (EDM), is making a public issue of 59.25 million new ordinary shares with a par value of 10 sen each, at an issue price of 29 sen per share.

Kronologi Group chief executive officer Piti Pramotedham said 4.74 million shares are available for subscription by the Malaysian public, 7.11 million shares for directors, employees and individuals who had contributed to the group’s success, plus 47.40 million shares to be offered via public placement to identified investors.

“The proceeds from the IPO are earmarked for business expansion, research and development (R&D) expenditure, working capital and listing expenditure,” Pramotedham told reporters after launching the company’s prospectus today.

“As part of the group’s strategy, RM6.0 million of the proceeds will be used for expansion in existing and developing markets, RM3.5 million for R&D expenditure, RM4.48 million for working expenditure and RM3.2 million for listing expenses.”

Pramotedham said Kronologi plans to strengthen its markets in Singapore, Malaysia, the Philippines, Thailand and India, and sees potential in Vietnam, Myanmar and Sri Lanka.

“We are poised to tap the growing EDM market in Southeast Asia where the compound annual growth rate is forecast at 7.3 per cent and is expected to reach RM3.0 billion in 2016,” he said.

“The group has carved a profitable niche in providing EDM solutions and services by providing back-up, storage, recovery and restoration of data for business assurance and operational continuity.”

The group recorded profit after tax of RM5.56 million for the financial year ended December 31, 2013, with revenue of RM42.17 million, and for the first half of this year, posted a RM3.41 million profit on revenue of RM28.10 million.

Bank Islam Malaysia Bhd has been appointed as the group’s principal adviser, sponsor, sole underwriter and placement agent for the listing.

Bank Islam managing director Datuk Seri Zukri Samat, who was at the launch, said Kronologi is the fourth IPO advised by the bank and the first listing on the ACE Market.

“By choosing Malaysia to launch the IPO, it has provided Malaysian investors with an opportunity to invest and participate in a company geared towards sustained profits,” Zukri said.

 — Bernama

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

Boustead Plantations IPO Oversubscribed by 6 times

Boustead Plantations Berhad Initial Public Offering (IPO) received an overwhelming response with its public portion of 64 million shares. It was oversubscribed by 6  times. The IPO attract 30,787 applications for 448 million shares.

The Institutional Price was fixed at RM1.60 per Offer Share. Accordingly, the Final IPO Price for the Retail Offering is fixed at RM1.60 per Offer Share as set out in the prospectus. As such there is no refund to be made to successful retail applicants.

Notices of Allotment will be dispatched by post to all successful applicants on or before 25th June 2014. Boustead Plantations is expected to be listed on the Main Market of Bursa Malaysia on 26th June 2014 under stock name “BPLANT”.

Detail please refer to Bursa Malaysia webpage

Econpile Holdings Bhd IPO

Piling and foundation specialist Econpile Holdings Bhd, which is en route for listing on Bursa Malaysia, has signed an underwriting agreement with RHB Investment Bank Bhd for the company’s initial public offering (IPO) exercise.RHB Investment Bank will act as the principal adviser, underwriter and placement agent for the IPO, which is slated for mid-year.

Econpile’s IPO entails a public issue of 90 million new shares and an offer for sale of 55 million vendor shares.

Of the 90 million new shares under the public issue, 27 million shares will be for application by the local public while 3.5 million shares are allocated to eligible directors, employees, and business associates of the group.

Some 47.5 million shares will be allocated through private placement to identified investors, while 12 million shares will be allocated via private placement to Bumiputera investors approved by the International Trade and Industry Ministry.

Additionally, 55 million shares under the offer-for-sale will be allocated by way of private placement to identified Bumiputera investors.

For the financial year ended June 30, 2013 (FY13), Econpile’s profit after tax surged 61.74% to RM27.87mil from RM17.23mil in the year before, while turnover leapt 26.25% to RM386.07mil versus RM305.78mil previously.

Econpile, which mainly serves the Malaysian market, said it has a policy to pay out at least 20% of profit after tax in dividends annually.

The construction firm’s promoters are group managing director The Cheng Eng, executive director and group CEO Raymond Pang Sar and executive director The Kun Ann, who is Cheng Eng’s daughter.

Cheng Eng and Raymond equally control 100% of the company. Post-listing, their stakes will be reduced to 36.4% each.

Icon Offshore Berhad IPO

EKUITI Nasional Bhd's first spinoff,  Icon Offshore Bhd, en route to a listing on  Bursa Malaysia's Main Market on June 25, aims to raise about RM1 billion through its initial public offering (IPO). Ekuinas, which was mandated in 2009 to invest in Bumiputera companies to build up their capacity,  had invested in two Bumiputera OSV companies,  namely Tanjung Kapal Services Sdn Bhd and Omni Petromaritime Sdn Bhd, before merging them  to create Icon Offshore in 2012.

As at April 30, the company boasts of 32 vessels available for charter and operating in waters off Malaysia, Thailand and Qatar. The company plans to add seven more vessels to its fleet by year-end. According to the prospectus, Icon Offshore owns one of the youngest fleet in the region with an average age of five years, versus the Southeast Asia average of 11 years. In Icon Offshore’s case, 90% of its fleet is serving out three to five year retainer contracts, providing a buffer to swings in the market.

The bulk of its fleet is locked into time charters, which typically last 12 months or longer. Its average utilisation has dipped from 88% in 2011 to 84% last year.

Some 70% of its jobs come from Petronas, which the firm is hoping to reduce by expanding into the region.

At an indicative initial public offering (IPO) price of RM1.85 a share, the oil and gas support services provider will be listed at a price-to-earnings multiple (PE) of 18 to 19 times its estimated 2014 earnings – a premium over the sector average of 13 times.

Its peers such as Perdana Petroleum Bhd and Alam Maritim Resources Bhd are currently trading at 13 times their forecast earnings this year, and between 11 and 12 times their expected profit in 2015, Bloomberg data showed.

On a historical basis, the listing price is a steep 24 times the company's earnings per share of 7.61 sen last year. Its 2015 valuations are more reasonable at 13 to 15 times earnings.

At these levels, the offshore support vessel (OSV) owner-operator is commanding valuations that are closer to the large cap, integrated players like Bumi Armada Bhd and SapuraKencana Petroleum Bhd.

 Its debt load, which is a staggering RM1.1bil, will shrink to RM743.65mil once some of it is paid off with the listing proceeds. 

The company's net gearing ratio of 2.78 times will also drop to 0.65 times post-IPO. Notably, its current borrowings are more than double its firm orderbook of RM502.4mil.

Icon Offshore’s total orderbook, inclusive of optional extensions, is valued at RM700.1mil. 

The firm posted net profit and sales of RM89.57mil and RM334.86mil last year. Its profit after tax margin had improved to 26.7% as at last year from 19.6% in 2011.

Icon Offshore is expected to match its historical growth rates of double-digit growth, says Jamal.

Its net profit and revenue jumped by a compound annual growth rate of 41.9% and 21.6%, respectively, in the three-year period up to 2013.

Heng Huat Resources Group Berhad

Heng Huat Resources Group Berhad, an investment holding company, engages in the manufacture and sale of mattresses and related products; and manufacture and trade of coconut and oil palm biomass materials in Malaysia. It offers fiber and other mattresses and bedding accessories, including mattresses, divans, and headboards under the Fibre Star brand name; and cushions, pillows, and bolsters under the Xiong Mao brand name to furniture retailers. 

The company also operates as an original equipment manufacturer of fiber mattress for various local brands. In addition, it provides oil palm empty fruit bunch fiber and coconut fiber for various applications, including mattress, briquette, coconut fiber sheet, and geotextile, paper pulp, landscaping, and horticulture; coconut peat for fertigation and soil conditioning applications; and coconut fiber sheets for mattress. Further, Heng Huat Resources Group Berhad exports its products to China. The company is headquartered in Sungai Bakap, Malaysia.

Boustead Plantations Bhd

Boustead Plantations Bhd's initial public offering (IPO) is expected to raise close to RM1bn, said Boustead Holdings Bhd deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin. ―We have received shareholders' approval for the listing of Boustead Plantations,‖ he said at a briefing, here, yesterday. ―Based on an indicative offer price of RM1.60 a share, the IPO should be able to raise RM928m. The listing is slated for mid-June. As of now, there are no cornerstone investors,‖ Lodin said. He noted that the Boustead Plantations IPO is timely because the price of crude palm oil (CPO) is on the uptrend. (BT) 

BHB deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin (pic) said the group was planning for the initial public offering (IPO) to take place between end-May and mid-June.

“The timing for the listing is good, as we expect crude palm oil (CPO) prices to improve during that period, and hope to get the maximum benefit from it as well as market demand for our CPO,” he told reporters after the group’s EGM yesterday, where shareholders approved the listing.

In a circular to shareholders, the group said RM420mil or 45.3% of the total gross proceeds would be used to beef up Boustead Plantations’ landbank, RM390mil or 42% for the repayment related to Boustead REIT’s (BREIT) privatisation, and the rest for replanting and capital expenditure as well as to pay for the IPO expenses.

Lodin said the company was looking to expand Boustead Plantations’ landbank, both greenfield and brownfield, mainly in Sabah and Sarawak.

“At the moment, we are focusing on improving our efficiency and production of our oil palm estates,” he said.

Boustead Plantations plans to grow its landbank by 20,000ha from its current total planted area of 71,092ha within five years.

Half of the acquisition is to be financed by the IPO proceeds and by debt instruments, if required, while further fund-raising will cover the rest. It is offering up to 656 million shares of its enlarged 1.6 billion share base, comprising 580 million new shares and 76 million shares under the offer for sale.

Some 174.59 million and 206.84 million shares would be set aside for BREIT and BHB shareholders, respectively.

The entitlement offer is one Boustead Plantations share for every five BHB shares, and three Boustead Plantations shares for every five BREIT shares.

The remaining 47 million and 64 million shares for retailers have been apportioned for directors and staff and the Malaysian public.

BHB is also expecting to raise additional total gross proceeds of RM121.6mil from the offer for sale shares, with the allotment option expected to raise up to RM224mil.

BHB intends to maintain a controlling stake of 59% in Boustead Plantations and has committed a dividend payout of 60%.

The “illustrative” retail price of RM1.60 per IPO share was based on an approximate 16 times price earnings multiple (P/E) on an earnings per share (EPS) of about 10 sen.

The EPS took into account Boustead Plantations’ after-tax profit of RM159.7mil for the financial year 2013 estimate, it said.

The indicative offer price was at a discount to the prevailing valuations of comparable plantation firms such as Sarawak Plantation Bhd at a P/E of 18.24 times, IJM Plantations Bhd at 22 times and Hap Seng Plantations Holdings Bhd at 21 times.

Lodin expected CPO prices to maintain between RM2,600 and RM2,700 per tonne this year. Yesterday, the CPO price was at RM2,623 per tonne. (The Star)

At Least 9 IPOs Worth RM18.14b For 2014

At least nine major listings are in the works next year, which should raise more than RM18.4bil from the market.

Most of the issuers have already appointed their advising banks or are in the process of doing so.

Among the larger of these are the two related to Iskandar Malaysia, namely Iskandar Waterfront Holdings (IWH) and Medini Iskandar Malaysia, which together will seek to raise more than RM3bil.

The flotation of the two master developers will make them the first of their kind in Malaysia.

These are essentially companies that own vast tracts of valuable land but they don’t have a track record of being a developer themselves. They in turn will seek to strike joint ventures or divest parts of their land to make their profits. So it is left to be seen how the authorities and investors will take to these listings.

The other major listings will be by the owners of the country’s largest independent power producers, Malakoff Corp Bhd and 1Malaysia Development Bhd (1MDB). Both were initially planned for this year but delayed to 2014 for various reasons. The two initial public offerings (IPOs) will seek to raise money to reduce their debt levels.

Analysts have said they expect these power asset IPOs to be well-received, given their large market caps, resilient earnings and sustainable dividend yields.

A source from the banking sector said it may be too early to judge how the IPO market would fare in 2014.

“It is too early to predict at this moment as not all IPOs will come through.

“However, even on that basis, due to the brought-forward deals, the current deal flow for 2014 looks good compared with this year, with a good mix of mega (RM500mil and above) and mid-sized (around RM300mil) IPOs.”

In terms of total IPO value, the source said it should be about the same as this year.

“If more come through successfully with no delay, the total value could be more than this year,” the source added. “However, there are likely to be some delays.”

Besides these IPOs, there is likely to be another group of companies coming to the market under the guidelines for special purpose acquisition companies, or SPACs, and business trusts. There are said to be a number of interested parties seeking a SPAC listing but these issuers have to wait until additional guidelines for SPAC coming into place soon.

SPACs are essentially firms without any businesses that are listed with the aim of using the IPO proceeds to undertake mergers or acquisitions. Since the guidelines were introduced in 2009, three SPACs have been listed.

Business trust listings were introduced more recently. However, while there has been a fair bit of interest, the companies planning them are facing the challenge of providing a decent enough of a yield to attract investor interest in their flotations. This is because interest rates elsewhere are high and can get higher.

Furthermore, the under-performance of Singapore business trusts has done little to inspire confidence. Created a year ago, business trusts enable asset owners to list their cash-flow generating assets.

RHB Investment Bank Bhd director and regional head of equity capital markets Gan Kim Khoon recently said that investors should should ride on the wave of Malaysia’s IPO market, but only after doing their homework on the new entrants.

He noted that all the IPOs this year were making money for investors and said this trend was likely to continue next year, when speaking at a recent panel discussion on the prospects for next year’s equity market.

Gan reportedly said the timing and sectors were no longer the major considerations for investors buying into IPO counters and that investors should try to put their money into the IPO market.

-The Star
http://www.thestar.com.my/Business/Business-News/2013/11/25/At-leat-9-IPOs-worth-RM1814bil-for-2014.aspx

Barakah Offshore Petroleum Bhd

Barakah is a direct proxy to PETRONAS’ Pan Malaysia Transportation & Installation (T&I) Package A play, according to Maybank. Maybank said it has a relatively new and modern Malaysia-flagged and-owned pipelay vessel to capitalise on T&I opportunities and the cabotage ruling advantage. Barakah is a growth stock, with a 3-year net profit CAGR of 28%. Maybank has assigned Barakah target price at RM1.00,their base-case target price is pegged to 12x FY15 PER, on a slight premium to small-mid cap O&G peers’valuations of 11x (with market capitalisations of sub-MYR3b). They initiating coverage with a BUY and MYR1.00 TP.

On a blue sky scenario, assuming that it wins Package A in a full contractor role, maybank FY15 net profit forecast would be higher at MYR100m (+45%) and Barakah target price would be MYR1.45 on an unchanged 12x PER target.

Barakah IPO listing price is RM0.65 (but the reference price is RM0.535 maybe got loan stock), according to Hong Leong, by applying a 14x multiple (which is their target multiple for small cap O&G companies) on FY14 EPS, their target price works out to RM0.80, implying a total upside potential of 23%.

Not many people have heard of Barakah IPO as I didn’t see them offer to the public via the normal IPO due to the reverse take-over. Not to worry on Vastalux, according to Barakah group president and CEO, Barakah are only assuming the stock number of Vastalux and will not be taking over any of its assets and liabilities.

Caring Pharmacy IPO Target Price

Kenanga give Caring Pharmacy fair value at RM1.55 based on 13x CY14 EPS of 11.9 sen. They expect Caring to register net profit of RM23.8m and RM27.4m in FY14 and FY15, respectively. They conservatively forecast a 17% revenue growth each in FY14 and FY15, which is conservatively lower than the past three years average of 20% on the back of same-store-sales growth and opening of new outlets. They have factored in marginally lower margins taking into account higher advertising and promotion activities in an effort to increase or sustain its market share in our forecasts. Based on their earnings estimate and a 30% dividend payout assumption, they expect FY14 and FY15 net Dividend Per Share of 3.3 sen and 3.8 sen respectively, translating to an average Caring Pharmacy dividend yield of 3%.

Their fair value is RM1.55 is based on 13x CY14 EPS of 11.9 sen. The Caring Pharmacy PE ratio of 13x multiple is at 22% and 30% discount to Berjaya Food’s 1-year forward PER of 17.0x and Berjaya  Retail’s 18.5x PER valuation, respectively, when it was taken private.

Caring Pharmacy Group Bhd IPO

Caring Pharmacy Group Bhd is offering for sale 35 million new shares at RM1.25 each to raise RM43.75m as it seeks a listing on the Main Market of Bursa Malaysia Securities.

According to its prospectus issued on Friday, it is offering 10.88 million new shares to the public while 5.71 million would be offered to eligible directors and employees, another 4.2 million shares offered to approved Bumiputera investors.

The pharmacy chain operator said that the remaining 14.198 million shares could be placed out.

Caring Pharmacy said of the RM43.75mil, 41% of the proceeds would be used for new pharmacy outlets while 26.76% would be used for working capital.

On its dividend policy,  the company said shareholders can expect dividends of not less than 30% of its annual profit.

Caring Pharmacy managing director Chong Yeow Siang said the pharmacy is ranked amongst the top three community pharmacy operators in Malaysia with an estimated market share of 4% based on the number of community pharmacy outlets.

“We are encouraged by the overwhelming response that we received from investors and fund managers for our shares offered through the private placement where the book has been covered multiple times,” he said.

Caring Pharmacy said based on its IPO price and enlarged issued and paid-up share capital of 217.7 million shares, its total market capitalisation is about RM272.133mil.

It noted the “IPO price of RM1.25 per share represents a premium of 172% to the pro forma consolidated NA per share, and price to book ratio of about 2.72 times”.

Caring Pharmacy said based on its profit after tax and minority interest of RM20.55mil for 2013 and its enlarged issued and paid-up share capital of 217.7 million shares upon listing, its net price-to-earnings stood at 13.24 times.

The pharmacy chain is expected to list its shares on Nov 13.

Kenanga Investment Bank Bhd is the principal adviser, managing underwriter, joint underwriter together with MIDF Amanah Investment Bank Bhd and joint placement agent together with Inter-Pacific Securities Sdn Bhd for the IPO.

Motivasi Optima Sdn Bhd and Jitumaju Sdn Bhd are the promoters of the IPO.


Listing Detail:
Listing Sought: Main Market
Issue Price: RM 1.25
Par Value: RM 1.00

Dates:
Offer Period Open: 18-10-13
Offer Period Close: 30-10-13
Tentative listing date:  13-11-13
Number of shares:
Public Issue: 35,000,000
Stock Code: CARING

Karex IPO Target Price

TA Securities said due to the lack of pure listed condom manufacturers, they base their valuation on their targeted glove industry PE ratio of 14x. They give Karex fair value at RM2.40 per share based on a 25% premium to their targeted PE multiple. Incorporating proceeds from capital gains and dividend yield, this translates into a total return of 31.9%. They believe their PE multiple is justified given the following arguments: 1) Largest condom manufacturer in the world; 2) Aggressive expansion plans to double capacity within three years; and 3) Access to key licenses and accreditations to export products across 110 countries. Nevertheless, key threats include: 1) Inability to fully utilize incoming capacity; 2) Delays in construction of new facilities and 3) Fluctuations in currency exchange rates and material prices.

2014 Karex dividend yield is about RM2.2%, assuming a 30% payout ratio. Currently management does not have any Karex payout ratio policy.

TA Securities initiate coverage on Karex with a target price of RM2.40 per share. They like the group for its aggressive expansion plan to double capacity to 6.0bn pieces of condoms/annum by 2015. Assuming a utilization rate of 70% and average selling prices (ASPs) of 3 cents (9.6 sen) per condom, the additional capacity will boost revenue by RM201.6mn once completed (FY13: RM231.4mn).

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 JFApex Research is recommending that investors subscribe to condom-maker Karex’s IPO, which is priced at RM1.85, saying it has determined fair valuation for the stock at RM2.07.

The retail offering of the IPO opened on Oct 11 and will close on Oct 23, with allotment of the IPO shares to be done on Nov 4.

The research house says the world’s largest condom manufacturer, which is seeking to raise RM75m from its IPO, provides a good alternative to investors searching for a proxy to the rubber-related healthcare products in Malaysia.

Like other local-listed rubber glove manufacturers, Karex is 1) exposed to the fluctuation of rubber prices, 2) exports most of its products, and 3) is in an industry in which demand growth remains resilient.

According to JF Apex, Karex has enjoyed overwhelming earnings growth, with FY2013 net profit jumping 141.7% year-on-year to RM29mil from RM12mil, on the back of higher sales volume as well as higher margins from easing latex prices and higher production utilisation.

“Moving forward, we project a three-year CAGR (compound annual growth rate) of 21% in its bottom line from FY2014F-FY2016F as the group is embarking on an explosive capacity expansion, resulting in economies of scale which shall improve cost efficiency and thus its competitiveness and profitability,” the research house says.

It also notes Karex’s share of business from the tender market (NGOs, international agencies and governments), which contributes 36% of total revenue.

JF Apex says its fair valuation of RM2.07 is derived by pegging 15 times price-earnings ratio to Karex’s FY2014 forecast earning-per-share of 13.8 sen.

“The valuation applied is a 10% discount to the valuation we ascribed to Top Glove (16.5 times). Our fair value renders a potential upside of 12% from the IPO price.

“Karex shares similarity with Top Glove as both are the largest players in the rubber-related healthcare products in Malaysia by having the class-leading production capacity. However, we reckon that the lower valuation is justified in view of the relatively lower market capitalisation of Karex, and the Group has not fixed any dividend policy to reward its shareholders as compared to the 50% dividend payout ratio Top Glove is currently implementing,” it concludes.

UMW Oil and Gas IPO Oversubscribed table

INITIAL PUBLIC OFFERING (“IPO”) OF UP TO 843,180,000 ORDINARY SHARES OF RM0.50 EACH IN UMW OIL & GAS CORPORATION BERHAD (“UMW-OG”) (“IPO SHARES”) COMPRISING AN OFFER FOR SALE OF UP TO 231,380,000 EXISTING SHARES (“OFFER SHARES”) AND A PUBLIC ISSUE OF 611,800,000 NEW SHARES (“ISSUE SHARES”) IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR THE ENTIRE 2,162,000,000 ORDINARY SHARES OF RM0.50 EACH IN UMW-OG (“SHARES”) ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD, IN THE FOLLOWING MANNER:

 

(I) INSTITUTIONAL OFFERING OF UP TO 648,600,000 IPO SHARES TO MALAYSIAN AND FOREIGN INSTITUTIONAL AND SELECTED INVESTORS, INCLUDING BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY AT THE INSTITUTIONAL PRICE TO BE DETERMINED

 BY WAY OF BOOKBUILDING (“INSTITUTIONAL PRICE”); AND

 

(II) RETAIL OFFERING OF 194,580,000 IPO SHARES TO THE ELIGIBLE DIRECTORS AND EMPLOYEES OF UMW-OG GROUP, THE ELIGIBLE DIRECTORS AND EMPLOYEES OF UMW HOLDINGS BERHAD (“UMWH”) AND ITS SUBSIDIARIES, THE ENTITLED SHAREHOLDERS OF UMWH AND THE MALAYSIAN PUBLIC, AT THE RETAIL PRICE OF RM2.80 PER SHARE (“RETAIL PRICE”), PAYABLE IN FULL UPON APPLICATION AND SUBJECT TO REFUND OF THE DIFFERENCE BETWEEN THE RETAIL PRICE AND THE FINAL RETAIL PRICE IN THE EVENT THAT THE FINAL RETAIL PRICE IS LESS THAN THE RETAIL PRICE,

 

SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISIONS AND OVER-ALLOTMENT OPTION. THE FINAL RETAIL PRICE WILL EQUAL THE LOWER OF:

 (I) THE RETAIL PRICE OF RM2.80 PER SHARE; AND

 (II) THE INSTITUTIONAL PRICE,

 SUBJECT TO ROUNDING TO THE NEAREST SEN.

=================================================================================

MIH is pleased to announce that Westports' initial public offering ("IPO") to the Malaysian public ("Public Retail Offering"), comprising 68,200,000 Offer Shares has been oversubscribed.

A total of 32,835 applications for 429,799,600 Offer Shares were received from the Malaysian public representing an oversubscription rate of 5.30 times.

 

If you look at the subscription rate, chances of striking the IPO is not very low. Saw from web site that if apply public 1,000 shares, the chances are 5.97%

 

1,000  5.97%

2,000  6.97%

10,000 9.96%

100,000  13.73%

1,000,000   66.67%

 

 

Bumiputra portion:

1,000  26.19%

2,000  27.12%

10,000 30.24%

100,000  76.11%

1,000,000   100%

Karex Berhad

Karex Bhd, rubber products manufacturer is scheduled to be listed in Main Market of Bursa Malaysia on 6th November 2013.

The Initial Public Offering (IPO) consists of public issues of 40.5 million new ordinary shares and offer for sale of 27  million ordinary shares at an IPO price of RM1.85 per share.

Out of this, 13.5 million shares are allocated for application by Malaysian public and 6.8 million shares reserved for the eligible directors, employees, business associates and person contribute to the company. The remaining shares are for institutional & private placement.

The IPO exercise is expected to raise RM74.92 million and the proceeds will be used for capital expenditure (RM42mil), working capital (RM14mil), repay bank borrowings (RM10mil), listing expenses (RM5mil) and research and development (RM4mil).

Karex is the world’s largest condom manufacturer with which currently has 10% of the global market share.

For the capital expenditure, Karex will develop its largest factory in Pontian, Johor, which was not far from the company’s existing plant. Upon completion of the expansion of the factory, the total annual production capacity will increase from the current three billion pieces to six billion by end-2015.

Besides Pontian, the company also has factories in in Klang, Selangor and Hat Yai, Thailand.

On top of condoms, Karex also produces catheters, latex probe covers and lubricating jelly.

More information about Karex can be found in their website.

Currently, Karex Berhad does not have any fixed dividend policy.

RHB Investment Banks is the principal adviser, underwriter and placement agent of the IPO. For those who are interested in Karex IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 23rd October 2013 at 5pm. Tentative balloting date is on 25th October 2013 while the allotment date is on 4th November 2013.

==============================================================

Listing Detail:
Listing Sought: Main Market
Issue Price: RM 1.85
Par Value: RM 0.25

Dates:
Offer Period Open: 11-10-13
Offer Period Close: 23-10-13
Tentative listing date:  6-11-13

Number of shares:
Public Issue: 20,250,000
Offer for Sale:  27,000,000
Private Placement: 20,250,000
Stock Code: KAREX

UMW Oil & Gas

TA Securities initiate coverage on UMW Oil & Gas Corporation Bhd (UMW-OG) with a Buy recommendation and Target Price of RM3.36 based on 22x FY14 P/E. They believe that 22x FY14 PER is not excessive given that Malaysian-listed mid-large cap upstream O&G counters with market cap between USD2bn-3.5bn currently trade at an average of 21x CY14 P/E. This includes Bumi Armada (19x), MMHE (20x), Dialog Group (25x). Their Target Price translates into 19.8x FY15 P/E whereby FY15 would see the full-year contribution of UMW-OG’s entire fleet of 6 drilling rigs and 5 HWUs. They expect UMW Oil & Gas dividend yield zero for the next few years.

Kenanga give UMW-OG fair value at RM3.33 per share, based on CY14 21.0x PER. This is at a small discount to the PER of 22.0x which they ascribed to Sapurakencana (SKPETRO; OP; TP: RM4.72), in terms of relatively smaller size than the latter. Whilst this is at a premium to its global peers’ weighted average CY14 PER of 7.7x, they believe UMW-OG should be rated against domestic peers given that the major contributor to group earnings is mainly derived from Malaysia. They also expect UMW Oil & Gas dividend yield zero for the next few years. 

HLIB expects price to earnings ratio (P/E) to fall to 14 times in FY15 with a conservative assumption of additional one rig per year after FY14. HLIB initiated coverage on UMW O&G with a “buy” call and a target price of RM3.36 based on 20 times average FY14 to FY15 P/E as the full contribution from Naga 5 and Naga 6 will only be reflected in FY15.

Westports IPO Target Price

As I have mentioned in my previous post, analysts will come out with different methods in giving Westsports fair value, rather than the common PE ratio. This is because Westsports based on IPO price of RM2.50, Westports PE ratio is high. Westports fair value is RM2.84 by Alliance Research. They say based on Westports policy to payout 75% of net profit as dividend, they expect Westports’ FY13-FY15 DPS of 9.0 sen, 9.8 sen and 9.9 sen respectively. Based on the Westports IPO retail price, this translates into to a dividend yield of 3.6%, 3.9% and 4.0%, for FY13 to FY15, respectively. They derive a fair value of RM2.84, using dividend discount model. This implies an upside potential of 13.6% to the retail IPO price of RM2.50.Their fair value of RM2.84 translates into FY14 P/E of 21.7x and FY14 dividend yield of 3.5%, which is in line with Westports’ peers.

One thing is the IPO price is not fixed yet, and have chances of a lower IPO price depending on the bidding by institutional clients.

JF Apex Securities said subscribe with a target price of RM2.97. Their non-rated target price is based on Dividend Discount Model (DDM) with discount rate, WACC of 7.2% and terminal growth rate of 2.5%. It translates into implied PER of 19.4x for 2014F which is above its peers’ average of 16.5x. They view the higher PER is fair given the Group’s status as a leading port operator in Malaysia shall render premium valuation to the Group.

Their target price translates into potential upside of 22.8% (capital appreciation of 18.8% and dividend yield of 4%) to the listing price. They believe the Group’s dominant position as a leading port operator in Malaysia with commendable earnings track record and decent dividend yield would attract investors’ interest.


====

According to HWANGDBS Vickers Research, recommendation subscribe: Fair value of RM2.75. The Westports fair value is based on DDM valuation (assuming sustainable dividend payout ratio
of 75%, initial 5-year growth rate of 8.2%, 6.6% discount rate, long-term growth rate of 5.5% and a concession period until 2054). This translates into potential total return of 13% (inclusive of dividend yield). Thier target price – which values Westports’ market cap at RM9,378m – implies FY13 net dividend yield of 3.0% and 19.8x FY14 P/E. We value Westports at a premium to NCB Holdings (15.2x FY14 P/E; market cap of RM1,872m), which operates out of Northport (with a handling capacity of 5.5m TEUs per annum) in Port Klang, because of Westports larger market cap and strong earnings track record.


Source:  ht**://politemarket.blogspot.com/2013/09/westports-ipo-target-price.html

Malaysia's Westports prices share-sale at top end

KUALA LUMPUR: Westports Holdings Bhd, the operator of Malaysia's busiest port, has raised about 2.03 billion ringgit ($628.77 million)in its IPO, pricing it at the top of expectations, two sources with direct knowledge of the deal said on Monday.

The IPO for Westports is likely to be the country's second largest this year behind UMW Oil & Gas Corporation Bhd, an offshore and drilling services firm, which is looking to raise $740 million.

Westports, which is partially owned by Hong Kong billionaire Li Ka-shing, priced the offering at 2.50 ringgit per share versus an indicative price range of 2.30-2.50 ringgit said the sources, who were not authorised to speak publicly on the matter.

All proceeds from the offering will go to existing shareholders and not to the company which has said it is listing to raise awareness of its brand.

The company leaned heavily on cornerstone investors, ranging from Utilico Emerging Markets to Genesis Investment Management, who accounted for close to 48 percent of the total institutional tranche.

Westports, which counts state investor Khazanah Nasional Bhd and Li's Hutchison Port Holdings as shareholders, could not be reached for comment.

Credit Suisse, Goldman Sachs and Maybank were joint global co-ordinators. Bank of America Merrill Lynch, Credit Suisse, Goldman Sachs, HSBC and RHB are joint bookrunners.

The offering accounts for 23.8 percent of its total share base. ($1 = 3.2285 Malaysian ringgits) - Reuters

Peruntukan Saham Bumiputera MITI

Peruntukan saham khas Bumiputera oleh MITI bagi syarikat yang disenaraikan di Bursa Malaysia Berhad, adalah sebagai pelaksanaan Dasar Pembangunan Negara (DPN) mengenai pemilikan 30 peratus ekuiti Bumiputera. Pelabur-pelabur Bumiputera yang layak menerima peruntukan saham-saham khas yang diagihkan MITI terdiri daripada Institusi Amanah Keutamaan, pemegang saham Bumiputera sedia ada syarikat dan Ahli Lembaga Pengarah Bumiputera. Peruntukan saham khas juga boleh dipertimbangkan kepada syarikat dan koperasi Bumiputera, individu berkelayakan serta pelabur Bumiputera yang dicadangkan oleh syarikat atau Bank Penasihat yang memenuhi kriteria MITI. 

Mulai Disember 2008, maklumat mengenai saham-saham khas tawaran awam permulaan (IPO) Bumiputera yang akan diagihkan oleh MITI, akan dipaparkan di laman web MITI. Ini bertujuan untuk memperluaskan outreach kepada pelabur Bumiputera yang layak, mengikut 

definisi yang dinyatakan dalam laman web MITI.