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| Foreign IPOs add new dimension to Bursa, says AmInvestment |
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Tags: AmInvestment Bank Bhd | IPOs | Kok Tuck Cheong | Multisports Holdings Ltd
| Written by Fong Min Hun | |||
| Friday, 31 July 2009 10:56 | |||
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AmInvestment’s chief executive officer and managing director Kok Tuck Cheong, better known in banking circles as TC Kok, spoke to reporters after launching the prospectus of the second Chinese-based company to list directly on Bursa here yesterday. “Foreign IPOs will add a new dimension in Malaysian capital markets. With the very strong liquidity that we have, we are looking forward to very strong flows, and not just in Multisports or Chinese-based stocks,” he said. Kok added that the local regulatory authority, Securities Commission, was very keen on bringing in foreign listings, and that Multisports Holdings Ltd, imminently the second foreign direct listing on Bursa, was listing on the invitation of the investment bank. When asked whether there was investor demand for these kinds of stocks in Malaysia especially given the experience of the first Chinese listing on the market, Xingquan International Sports Holdings Bhd, he said Malaysian investors needed greater awareness of the strength of the company’s fundamentals. “These are still early days for Chinese stocks to be listed on Bursa. Our mandate is to select very strong, high-growth companies that will be able to develop strong investor followings,” he said.  “There needs to be greater investor relations cultivation. Fundamentally the company is very optimistic of its performance going forward, but there needs to be greater awareness of the company’s performance and of the company.” He said investors also have to recognise that some of the accounting problems with the so-called S-Chips, Chinese companies listed in Singapore, were isolated problems, and should not spoil the entire basket. Multisports Holdings Ltd is scheduled to be listed on Aug 19 on Bursa’s Main Market, the single unified board that will replace the existing Main and Second Boards on Aug 3. Multisports is expected to raise some RM48.96 million from the issue of 57.6 million new shares priced at 85 sen apiece. Its initial public offering (IPO) also includes 42.5 million offer shares for sale, bringing the total value of the IPO to RM85.1 million should retailers take up the entire offering. The majority of the IPO’s proceeds will go towards capacity expansion. Presently, Multisports is operating at over 90% capacity, and unable to meet new orders coming in. At 85 sen per share, Multisports has a price-earnings ratio (PER) of about 4.47 times based on gross earnings per share (EPS) of 19 sen, which is taken from the company’s prospectus. Multisports registered profits after tax of RM49.18 million for the year ended Dec 31, 2008, registering earnings growth of over 20% for the last three years. Its profit margins have also consistently stayed above the 20% mark, averaging 23.78% for the same time period. Of the 57.6 million new shares, 18 million has been earmarked as public shares for retail subcribers. The remaining 39.6 million shares were successfully placed out to institutions and high net-worth individuals. AmInvestment, the sole underwriter, adviser and placement agent of the IPO, said the second tranche of placement shares consisting of the offer shares for sale, had been successfully placed out. This article appeared in The Edge Financial Daily, July 31, 2009.
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| Last Updated on Friday, 31 July 2009 11:00 |
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