Tune Ins IPO listed

IPO:   RM 1.35
Open: RM 1.38
High:   RM 1.38
Low:   RM 1.33
Close: RM 1.36

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Tune Ins opens with mild premium at RM1.38

KUALA LUMPUR: Tune Ins Holdings Bhd opened at RM1.38, which was three sen above its institutional and final retail price of RM1.35 when it made its debut on the Main Market of Bursa Malaysia on Wednesday.

There were 6.30 million shares done at the start of trade.

At 9.03am, it was unchanged at RM1.35 in line with the cautious market sentiment. There were 11.98 million shares done.

The FBM KLCI fell 2.11 points to RM1,612.96. Turnover was 56.33 million shares valued at RM51.60mil. There were 64 gainers, 49 losers and 75 counters unchanged.

At a press conference after the listing, CEO Peter Miller said the firm could increase its dividend payout ratio of 40% provided it did not have any use for its cash.

In its prospectus, Tune Ins said it will put aside RM50mil for M&A in neighboring countries such as Indonesia and Thailand, which it expects to complete within the next 24 months.

"We are only looking to buy their license, so we will not be making any big, brick and mortar acquisitions," Miller said.

M&A Securities had a Hold call with fair value at RM1.42 with only 5.2% upside to the retail price of RM1.35. The initial public offer raised RM222.20mil.

Tune Ins is involved in online insurance and general insurance. Its insurance products are sold to customers through its partners AirAsia, Tune Hotels and AirAsia Expedia.

M&A Securities said Tune Ins in a product manager for its partners, as part of the online booking process, among others Tune Ins design and manage insurance products for its online partners. Its subsidiaries are operating as insurance providers, underwriters, reinsurance. 80% of its premium is air travel protection plan.