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)

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.