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
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
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.