Thursday, 31 December 2015

Ranhill Holdings Berhad IPO

IPO: Ranhill Holdings Berhad
Price: RM 1.70
Market: Main

Last date: 29 Jan 2016
Ballot date: 03 Feb 2016
Allot date: 17 Feb 2016
List date: 18 Feb 2016

Ranhill intends to pay a minimum 70% of profit after tax as a dividend.

Friday, 17 July 2015

Wednesday, 8 July 2015

AirAsia share price plunges on spectre of Indonesian ops shutdown

KUALA LUMPUR (July 8): AirAsia Bhd (Financial Dashboard)’s shares fell 11 sen or almost 8% to RM1.38 in early trade today on the back of concerns that Indonesia AirAsia [IAA] may be shut down by the end of the month due to new capital requirements.

IAA will require an injection of at least 3,035 billion rupiah to reverse its negative equity position, of for which AirAsia will have to fork out RM419 million due to its 49% shareholding.

IAA has been making losses of up to IDR 531 million in the first quarter of 2015 (1Q15).

Since AirAsia will only recognise its share of profits once future cumulative profits sufficiently offset negative reserves, its current interest in IAA has been reduced to zero.

“This means that if IAA were to cease operations, the P&L impact on AirAsia will be ‘positive’ as AirAsia will not have to recognise its share of IAA’s loss,” Maybank Investment Bank Research analyst Mohshin Aziz said in a note to clients today.

However the long-term business strategy and operational impact would be negative for AirAsia, he said.

“AirAsia has MYR1,600m of cash as at end of 1Q15 and therefore can make this payment.

“However, we doubt the other local shareholders have the ability to pay for the remaining IDR1,548 billion within the next three weeks,” he added.

Mohsin said that the ruling, especially the short three-week time frame for compliance, came as a surprise, although the Ministry was expected to provide concessions for the airlines.

He kept a ‘Buy’ call on AirAsia with a target price of RM2.45 pending the outcome of IAA’s meeting with the MOT.

At 9.48, AirAsia was the second most actively traded stock across the bourse with 26.6  million shares done.

Source: TheEdge

Monday, 6 July 2015

Ikhmas Jaya to invest RM32mil of IPO proceeds for new machinery

KUALA LUMPUR: Ikhmas Jaya Group Bhd plans to invest approximately RM32mil of its initial public offering (IPO) proceeds to purchase new construction equipment. 

Managing director Datuk Ang Cheng Siong said on Tuesday the investment would help the company leverage on many opportunities within the piling and construction industry. 

"Being listed will provide the company with a stronger platform to enhance our business and build a stronger corporate identity," he said at the company's prospectus launch. 

Ikhmas Jaya plans to invest about RM32mil of its IPO entails a public issue of 182 million shares of 25 sen each. The company intends to list on the Main Market of Bursa Malaysia on July 27. 

AmInvestment Bank is the adviser, sponsor, underwriter and placement agent for the IPO. 

Since its establishment in 1992, the company has completed projects for both the public and private sectors with a total contract value of RM1.7bil. 

Among its projects include the Putra and Prai bridges, Klang Valley Mass Rapid Transit-Kajang line, Kelana Jaya Light Rail Transit extension, Paradigm Mall and KL Eco City.

Source: TheStar

Saturday, 13 June 2015

Logistics based Xin Hwa to raise RM26.45m from IPO

KUALA LUMPUR: Integrated logistics service provider Xin Hwa Holdings Bhd plans to raise RM26.45mil from its proposed listing on the Main Market of Bursa Malaysia Securities.

The Johor-based company said on Thursday the initial public offer (IPO) comprised of 54 million shares at an issue price of 70 sen per share -- 37.78 million new shares and 16.22 million existing shares.

Under the listing exercise, it would be selling nine million shares to the public, three million units for eligible directors, employees and other persons who have contributed to the success of the company.

Xin Hwa said 18.22 million shares would be offered to approved Bumiputera investors while the remaining 23.78 million shares would be placed out to selected investors.

Based on the issue price of 70 sen per share and the enlarged issued and paid-up of 180 million shares, it would have a market capitalisation of RM126mil.

It said of the RM26.45mil to be raised from the IPO, it plans to use RM11.35mil to expand its fleet and RM4.75 to build a new warehouse, RM3.75mil to repay borrowings, RM3.08mil as working capital and the remaining RM3.51 for estimated listing expenses.

Xin Hwa managing director Ng Aik Chuan said at the launch of the prospectus that its strong fundamentals would put it in good stead.

He said the proceeds raised would be mainly used to expand its business which included the construction of a new warehouse in Pasir Gudang, Johor measuring 220,000 sq. ft. and to buy 101 new vehicles such as prime movers and trailers.

Ng said the new warehouse was expected to start operations in the third quarter of 2015 while the purchase of vehicles would be over the next 24 months.

“Xin Hwa would continue to capitalise on its strengths to generate sustainable revenue from its existing business,” he added.

Mobile sharing-based Sedania to raise RM19.5m from IPO

KUALA LUMPUR: Telecommunications and IT business-based Sedania Innovator Bhd plans to raise RM19.55mil from its proposed listing on the Ace Market of Bursa Malaysia Securities Bhd.

In its prospectus issued on Tuesday, it announced it was selling 51.46 million new shares at an offer price of 38 sen each.

Sedania is offering for sale nine million shares to the public while one million units would be offered to the directors and entitled employees while the bulk of 41.46 million shares would be placed out.

Of the RM19.6mil, RM6.8mil will be for working capital, RM4.1mil for marketing expenses, RM4mil for capital expenditure, RM2.5mil for research and development and RM2.2mil for listing expenses.

Managing director Datuk Azrin Mohd Noor said he intends to list the company on the ACE Market on June 29.

The company provides airtime sharing solutions, including transfer that allows prepaid and/or post-paid mobile subscribers to transfer airtime credit to other prepaid subscribers on the same telecommunications network through SMS.

It also provides the airtime sharing request, which enables prepaid mobile subscribers with low or zero credits to request airtime credit other prepaid or post-paid subscribers on the same telecommunications network through SMS. It also offers SMS broadcast, mobile billing, mobile content, Islamic content, and web portal services.

In July 2014, it acquired IDOTTV Sdn Bhd which is an aggregator (platform and service enabler) specialising in providing ancillary services to mobile subscribers by partnering services providers such as mobile network operators (MNOs) and utility companies for their infrastructure and gateway.

Its ATS platform used the MNOs infrastructure and gateway to offer customises solutions to the MNO subscribers.

Wednesday, 20 May 2015

Dolphin to use IPO proceeds for factory expansion and working capital

KUALA LUMPUR: Dolphin International Bhd, headed for listing on the Main Market of Bursa Malaysia on June 9, will utilise more than 50 per cent of the RM31.28 million it expects to raise from its Initial Public Offering (IPO), for factory expansion and working capital. The rest will be for establishing a research and development facility and repay bank borrowings, said Group Managing Director Eric Low Teck Yin.

He said the listing would place the company in a stronger position to tap into Malaysia and Indonesia's huge palm oil milling machinery market.

There are over 439 mills in Malaysia and about 608 in Indonesia. Dolphin International is involved in the design, development, fabrication and sale of palm oil machinery.

"We will concentrate on catering to the demand for process integration and automation solutions that enhance productivity, safety and efficiency, while improving our facilities in Shah Alam and Puchong as well as innovating new solutions for customers in both countries," Low said.

He told reporters this after launching Dolphin International's IPO prospectus here today.

Low said the company's market share at present in the palm oil milling machinery sector was 3.2 per cent in Malaysia and 0.5 per cent in Indonesia.

The automation solutions for the palm oil milling machinery industry, he added, ensure production processes run in a more consistent manner.

Dolphin is issuing 46 million new ordinary shares of 20 sen each at an issue price of 68 sen per IPO share.

The public issue of 46 million new ordinary shares comprise 15 million IPO shares available for the Malaysian public and 8.25 million for the company's group directors and employees. It includes 22.75 million IPO shares for private placements, of which 2.5 million shares are for selected investors and 20.25 million for Bumiputera investors, approved by the Ministry of International Trade and Industry.

Saturday, 2 May 2015

Sunday, 1 March 2015

March fuel prices up 25 sen per litre

PETALING JAYA: Petrol and diesel prices will go up by 25 sen litre from March 1, the Domestic Trade, Cooperatives and Consumerism Ministry announced in a statement Saturday.

RON95 petrol will be priced RM1.95 (up from RM1.70), RON97 petrol at RM2.25 (up from RM2) and diesel at RM1.95 (up from RM1.70).

This follows the Ministry's decision to set the market prices of RON95 petrol and diesel on a managed float, starting from Dec 1 last year.

In the statement, Minister Datuk Seri Hasan Malek said prices were determined based on the average cost price of the product during February 2015 and currency exchange rates.

"The Government will monitor the development of the market price of the products' costs and currency exchange rates every time to set the retail price of petrol and diesel for the following months," said Hasan.

The Minister reminded all oil companies and petrol station operators to comply with the new pricing.

"Stern action will be taken against those who violate the rules relating to the new prices set by the Government," he added.


Saturday, 31 January 2015

New pump prices: Ron95 at RM1.70

PETALING JAYA: The Government announced a revision of retail petrol prices with effect from Feb 1.

The new price per litre for Ron95 is RM1.70 (from RM1.91), Ron97 at RM2 (RM2.11) and diesel at RM1.70 (RM1.93).

This follows the Domestic Trade, Cooperatives and Consumerism Ministry's decision to set the market price of Ron 95 and diesel based on a managed float, starting Dec 1, last year.

It warned oil companies and petrol station operators that strict action would be taken against parties that fail to comply with the new prices.


Tuesday, 27 January 2015

AirAsia earnings still intact

PETALING JAYA: Industry analysts generally concur that AirAsia Bhd’s earnings prospect remains intact despite its decision to abolish fuel surcharges across all airlines in the group.

The total removal of surcharge effective yesterday also includes low-cost long-haul affiliates AirAsia X, Thai AirAsia X and Indonesia AirAsia X, in line with declining global oil prices.

Largely, the analysts had already factored in the removal of surcharges to some extent in their previous estimates and believed that this would boost sales for the budget airline group.

AirAsia domestic flight fare could now go to as low as RM19 one way all-in, and international flights from RM49 one way all-in, said AirAsia in a statement.

MIDF Research analyst Tay Yow Ken said there wouldn’t be any changes in the company’s estimates published in a report last Friday as he had expected the fuel surcharge abolishment to be implemented soon.

“We have already factored it in our estimates,” he told StarBiz yesterday.

In the report, the research house said the removal of fuel surcharge would be positive for AirAsia.

“Even with the lower fuel surcharge, management expects yields to remain resilient.

“This is mainly due to the higher passenger volume expected in anticipation of Malaysia Airlines’ (MAS) planned capacity reduction,” it said.

MIDF Research explained that when AirAsia last removed its fuel surcharge in November 2008, Brent crude prices averaged at US$54.7 per barrel for that month.

“Despite that, yield was sustained at 14.1 sen before rising to 16.2 sen in 2010 due to higher passenger volume and the introduction of new routes. Furthermore, AirAsia, which adopts a lean operating cost structure, would have an edge over its rivals.

“We also believe that the fuel surcharge removal would generate positive publicity for AirAsia in the wake of the QZ8501 crash,” it said.

According to MIDF Research, the management guided that for every dollar of change in jet fuel price, earnings would be impacted by RM15mil.

Crude oil prices have plunged by more than 50% over the last seven months to around US$45 per barrel currently due to oversupply of the commodity in the international market amid weak demand. About 50% of AirAsia’s jet fuel requirements for 2015 are hedged at US$88 per barrel while it is presently hovering at US$60 per barrel.

On whether MAS would follow suit, Tay said MAS had, to some extent, lowered its fuel surcharges, adding it was hard to predict the immediate action now that the airline had been taken private.

MAS’ community airline, Firefly, had announced special fares with the removal of fuel surcharges under a Chinese New Year promotion deal recently.

MIDF has maintained its “buy” call on AirAsia with a target price of RM3.70 pegged to financial year 2015 price-to-earnings ratio of 10 times.

Monday, 5 January 2015

Malaysia's IHH eyes Thai hospital operator

PETALING JAYA: IHH Healthcare Bhd is believed to be looking at acquiring an 11.5% associate stake in Bangkok Dusit Medical Services Pcl (BDMS), the largest hospital operator listed on the Stock Exchange of Thailand, to gain a foothold in Thailand, sources said.

It is understood that the acquisition could be funded by a combination of cash and issuance of new shares.

The 11.5% stake in BDMS has a market value of 30.64 billion baht (RM3.27bil) based on the last closing price of the company’s shares at 17.20 baht.

IHH has a market capitalisation of RM39.26bil on Bursa Malaysia while it is valued at S$15bil (RM39.72bil) on the Singapore stock exchange.

The acquistion will be funded internally and externally, the quantum of which will be determined later by the company.

“IHH has been wanting to gain an entry into Thailand and this move would give it an instantaneous exposure to the country. Acquisition of an entire stake can take longer and will be more tedious in regulatory terms,” the source said.

“The IHH brand name is well recognised, especially since its successful IPO (initial public offering), and this acquisition will help it solidify its presence in Asia,” he added.

Analysts said that the acquisition made sense as the baht had been strenghtening in the past year against the ringgit and Singapore dollar.

“The healthcare sector excels on both fronts of being defensive in nature as earnings are backed by a growing exposure to insurance-based clients, and they can be viewed as growth companies as well,” said MIDF Research healthcare analyst Ahmad Annuar Rahman.

The purchase of the Thai asset could be a catalyst for the stock moving forward, he added.

The acquisition into BDMS will be the second associate stake buy for IHH after its 10.85% interest in India-based Apollo Hospital Enterprise Ltd.

At present share prices, BDMS is valued at a forecast FY14 ended Dec 31 price/earnings ratio of 36.52 times and price-to-book ratio of 5.82 times, according to Bloomberg data.

IHH was last traded at a forecast FY14 ended Dec 31 price/earnings ratio of 51.06 times and a price-to-book ratio of 2.07 times.

BDMS operates six major hospital groups in Thailand – Bangkok Hospitals, Samitivej Hospitals, BNH Hospital Phyathai Hospital, Paolo Memorial Hospital and the Royal Hospitals with a total of 29 hospitals – and two in Cambodia with a bed count of almost 5,000.

A presence in BDMS would also ease targeting of medical tourism dollars from the north Asean region for IHH indirectly, given the bigger similarity of country cultures of Cambodia, Laos, Myanmar and Vietnam to Thailand.