EITA debuts on Bursa with 22% premium

KUALA LUMPUR (April 9) : EITA Resources Bhd rose as much as 22% on Monday early trade during the elevator system provider’s debut on Bursa Malaysia.

The stock added 17 sen to an intraday high of 93 sen before trading lower at 88.5 sen with some 19 milllon shares done as at 9.17am. EITA was among the top gainers and most-actively traded entites across the exchange.

In a note, RHB Research Institute Sdn Bhd said it expects EITA to register an earnings compound annual growth rate of 14.4% between FY12 and FY14, helped by its new product development and higher demand for elevator systems.

“EITA’s dividend policy is to pay out at least 30% of its annual earnings. Therefore, we have forecast FY12 to FY14 annual net dividend per share of 3.6 sen and 4.4 sen. This translates to net yield of 4.3% to 5.3% based on our estimated fair value,” said RHB which has a target price of 83 sen for EITA shares.



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EITA’s IPO oversubscribed by 19.5 times

KUALA LUMPUR (April 3): Elevator manufacturer and distributor of electrical and electronics equipment EITA Resources Bhd, which is seeking a listing on the Main Board of Bursa Malaysia, received strong response for its Initial Public Offering (IPO) on the Main Market of Bursa Malaysia Securities Berhad (Bursa Malaysia), with its public tranche oversubscribed by 19.5 times.

In a statement Tuesday, the company said it received a total of 5,739 applications for 133.0 million shares with a total value of RM101.1 million, for the public tranche of 6.5 million shares under the Group’s IPO.

EITA group managing director Fu Wing Hoong said the oversubscription for its IPO as it indicates the investing community’s appreciation and level of confidence in EITA and its growth proposition.

“The upcoming listing in the Main Market will accelerate our expansion plans in both segments of elevator and E&E, by investing in new production facilities as well as research and development to enhance our corporate image and product offerings,” said Fu.

The company is scheduled to list on the Main Market of Bursa Malaysia on April, 2012.

The group’s IPO entailed a public issue of 23 million new ordinary shares and an offer for sale of 17 million ordinary shares, at an IPO price of RM0.76 per share.

Of the 23 million new shares, 6.5 million were allocated for public balloting and 3.5 million shares for eligible directors, employees and business associates of the Group.



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EITA to use IPO proceeds for new plant

KUALA LUMPUR (March 26): EITA Resources Bhd (EITA) is planning to use most of its proceeds from its April initial public offering (IPO) for a new factory in Bandar Bukit Raja, Selangor.

The group, which manufactures elevators and distributes electrical and electronics components, will raise a total of RM17.5 million from its listing exercise, of which RM12.3 million would be used for the new plant, according to its statement on Monday. The listing is scheduled for April 9.

Eita group managing director Fu Wing Hoong said "the upcoming listing on Bursa will go a long way toward boosting our profile and enhancing both our technical and production capabilities".

The group's IPO consists of 23 million public issue shares, and 17 million offer-for-sale shares.



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Elevator manufacturer EITA seeks listing on Main Board

KUALA LUMPUR (March 6): Elevator manufacturer and distributor of electrical and electronics equipment EITA Resources Bhd is seeking a listing on the Main Board of Bursa Malaysia.

The company had on Tuesday signed an underwriting agreement with sole underwriter AmInvestment Bank Bhd in conjunction with its initial public offer. AmInvestment Bank is also the adviser and sole placement agent.

EITA said it plans to venture into high-speed passenger elevator systems to boost its competitive edge in bidding for more projects in Malaysia and overseas.

Currently, EITA’s elevators, marketed under the EITA-Schneider brand, are installed in buildings ranging from three storeys to more than 30 storeys high.

The company plans to use part of its IPO proceeds for research and development, including development of high-speed passenger elevator systems, and expand its R&D Centre in Penang.



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Eita Resources gets SC nod to list on Main Mkt

KUALA LUMPUR (Jan 16): Eita Resources has received the Securities Commission’s approval to list on the Main Market of Bursa Malaysia Securities Bhd.

It said on Monday that its unit Eita-Schneider (MFG) Sdn Bhd provides end-to-end elevator systems services.

Eita’s group managing director Fu Wing Hoong said: “We are proud to be one of the few homegrown manufacturers and providers of elevator systems today, and we have successfully established a commendable track record alongside the country’s development.”

He said since 1998, the company had installed its in-house brand elevators including escalator and travellator systems in numerous commercial and residential PROPERTIES [], in Malaysia and the region.

Eita is expected to list in the first half of 2012. AmInvestment Bank Bhd is the adviser, sole underwriter and sole placement agent for Eita listing exercise.



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