Felda Global bolsters downstream portfolio ahead of IPO

KUALA LUMPUR (May 9): Main Board-bound Felda Global Ventures Holdings Bhd (FGVH) is bolstering its downstream portfolio ahead of its IPO next month with the launch of new consumer branded products.

The group's downstream arm Delima Oil Products Sdn Bhd. -- a subsidiary of FGVH's 49%-owned Felda Global Holdings -- expects over RM1 bilion turnover from newly launched range of bread spread products marketed under SunBear brand, the company said in a statement on Wednesday.

Delima Oil CEO Zakaria Arshad did not gave a time frame for the expected sales but said some RM3 million had been invested in the new products -- peanut butter, peanut spreads and chocolate spreads -- which will soon be available at over 7000 outlets including hypermarkets and supermarkets nationwide. The earmarked amount includes production, advertising and promotion costs.

"The launch of our latest SunBear products is testimony of the company's on-going efforts to add variety to our product offerings beyond cooking oil and palm olein products, in line with consumer needs," Zakaria said in the statement. The group will continue to leverage on its distribution reach and build on its brand value, he added.

Delima Oil's existing porfolio includes Saji cooking oil, the market leader with 27% share of the olein segment, it said. It also produces and markets Tiara and Tiga Udang cooking oil. Other products include Seri Pelangi margarines.

In May last year, Delima Oil introduced four products under the Saji brand: mayonnaise, condensed milk, evaporated milk and instant noodles.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Khazanah plans US$1.5b healthcare IPO in 2H, say sources

KUALA LUMPUR (April 16): State investor Khazanah Nasional Bhd is expected to list its healthcare assets in Kuala Lumpur and Singapore in the second half (2H), a deal that could fetch US$1.5 billion (RM4.61 billion), two sources with direct knowledge of the deal told Reuters.

The dual listing could be the fourth-biggest initial public offering (IPO) in the city state's history and Malaysia's second-largest this year after the planned listing of PLANTATION [] group Felda Global Venture Holdings Sdn Bhd.

"It is coming out in the second half," a source with knowledge of the deal told Reuters on Monday. "Some preliminary discussions are being held with cornerstones and Khazanah's representatives."

The IPO will be one of the first after elections in Malaysia that are widely expected to be held in June. Analysts and investment bankers have said Malaysia's IPO pipeline has slowed ahead of the poll because of concerns of market volatility.

A second source said the listing was set for June or July, with pre-marketing to start in May. Khazanah officials were not immediately available for comment.

The first source, who declined to be identified as the details of the listing have not yet been made public, said Khazanah was still making acquisitions "to bulk up the initial public offering".

Khazanah's healthcare assets are currently parked under Integrated Healthcare Holdings (IHH), in which Japan's Mitsui & Co Ltd owns a 30% stake.

Aside from IHH's recent purchase of Turkish hospital group Acibadem AS, the unit to be listed would have assets of Singapore's Parkway Holdings, Malaysia-based Pantai Hospitals and International Medical University.

Bank of America-Merrill Lynch, Deutsche Bank AG and CIMB are joint global coordinators and book runners for the deal. Goldman Sachs, DBS and Credit Suisse are joint bookrunners, a source told Reuters in December. — Reuters



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

IOI’s Bumitama debuts on Singapore exchange, up 36%

KUALA LUMPUR (April 12) : IOI Corp Bhd’s 30.4% associate Bumitama Agri Ltd rose as much as 36% on the PLANTATION [] firm’s debut on the Singapore bourse on Thursday.

Bumitama shares added 27 cents to an intraday high of S$1.02 before trading lower at 98 cents at noon for a market capitalisation S$1.72 billion (RM4.21 billion). At 30.4%, IOI’s stake in Bumitama is worth S$523 million.

For comparison IOI shares declined three sen to RM5.37 on the Malaysian bourse during lunch break for a market value of RM34.5 billion.

The Hongkong and Shanghai Banking Corp Ltd and DBS Bank Ltd are joint managers, bookrunners, and underwriters for Bumitama’s initial public offering.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

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.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

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.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Pestech gets SC nod to list on Bursa

KUALA LUMPUR (March 29): Pestech International Bhd, an integrated electric power TECHNOLOGY [] company has received the Securities Commission's approval to list on the Main Market of Bursa Malaysia.

In a statement Thursday, Pestech chief executive officer Pul Lim said the company focuses on emerging and developing countries where there was a demand for the development, improvement and build up of electricity transmission and distribution assets.

“Over the years, we have built an important presence in the industry through our credibility and track record,” said Lim.

He said Pestech had won and delivered multi‐million dollar projects involving electrical power transmission and distribution, which covers High Voltage (HV) and Extra High Voltage (EHV) substations, transmission lines and underground cable works.

Currently, the group was one of the few local companies that had the knowledge and capability to design and manufacture its own communication, protection and control products for use in their projects as well as to be sold as finished products, he said.

The company, which was established in 1991, said it started venturing into the foreign markets in 2007 and won its first contract for the supply of products to Brunei.

Since then, Pestech has successfully penetrated Ghana, Papua New Guinea, Cambodia, Sri Lanka and Tanzania, it said.

Foreign revenue contribution has been growing steadily in the last 5 years with approximately 51.4% of its revenue for the financial year ended (FYE) 2010 being contributed by foreign markets, said the company.

Pestech said its current key project was the design, building, testing and commissioning of substations in North Phnom Penh and Kampong Cham in Cambodia, and the 110km, 230kV transmission link between these two areas.

The project was currently ongoing and expected to be completed in 2013, it said.

Pestech said its other key projects include the electrical works and design, manufacture, supply, CONSTRUCTION [], installation and commissioning of two 132kV substations in Papua New Guinea for the Erap‐Hidden Valley Gold Mine Electrification Project and the design, supply, test and commission of a 161kV substation at Ayanfuri in Ghana for Central Ashanti Gold Mine.

The company said that in Malaysia, TENAGA NASIONAL BHD [] (Tenaga) had been its major customer since 2000.

It said Tenaga contributed about 36% to the revenue of the Group in FYE 31 December 2010.

Lim said Pestech was strategically positioned in the industry as utility companies and industrial users rely and engage our services to provide the systems and solutions for them.

“By being strategically located within developing nations and conducting in‐house engineering and development of products and solutions, we are able to be competitively priced,” he said.

He said Bank Islam Malaysia Bhd was the principal adviser for Pestech’s listing.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

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.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Felda Global listing a relevant move: Group

The listing of Felda Global Ventures Holdings Bhd on Bursa Malaysia’s Main Market is a relevant move for it to stay competitive at a local and international level, said Gabungan Pemikir Profesional Felda (GAPROF) panel member, Datuk Khairil Anuar Aziz.

"The listing is just a normal Initial Public Offering (IPO) process that can generate higher funding for the company. The Felda population increases every year and therefore, higher funding is required to manage activities," he told a press conference here today.

He also said the benefits to be received by the Felda community will not be touched and not even an inch of their land was included in the listing.

Meanwhile, Alumni Asrama Felda Malaysia (AAFM) president Abdul Malek Jalil said the listing could assist the Felda generation to get a place in the companies under Felda Global Ventures.

It could, he added, also give them an opportunity to expand their careers overseas, alongside Felda's foreign partners.

"The listing of the conglomerate should be done quickly to take advantage of the high global price of oil palm," Abdul Malek said. -- Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch: Sin Heng Chan, Ramunia, MMC, asiaEP

KUALA LUMPUR (March 13) : Malaysian stocks could encounter downward pressure on Wednesday as investors turned cautious on the technical dynamics of the local market. Analysts believe any gains on the FBM KLCI could be stifled by profit taking amid a downside bias perception on the local benchmark.

In a note on Tuesday, Hong Leong Investment Bank Bhd research head Low Yee Huap said the research firm had changed its stance from positive to cautious as it foresees more profit taking consolidation in the local stock market.

Low said “the bears look stronger now” against a backdrop of weaker technical readings in the FBM KLCI.

On Tuesday, anticipation of better US retail sales numbers had spurred Asian stock markets and crude oil prices. Notable gainers include Hong Kong’s Hang Seng which rose 0.97% to close at 21,339.7 points and Australia’s S&P / ASX 200 which climbed 1.21% to 4247.62 while Taiwan’s Taiex was up 1.31% to 8031.51.

Malaysia’s FBM KLCI of 30 blue chip stocks which rose as much as 0.3% to an intraday high of 1569.15 points, however pared earlier gains to settle with a 0.73 point loss to 1564.02 points.

Stocks to watch on Wednesday include Sin Heng Chan (M) Bhd, RAMUNIA HOLDINGS BHD [], MMC CORPORATION BHD [],asiaEP Resources Bhd, Lafarge Malayan Cement Bhd , GEFUNG HOLDINGS BHD [] and YTL Corp Bhd.

Shares of Sin Heng Chan surged on Tuesday, prompting a query from Bursa Malaysia securities over the unusual market activity.

Its share price closed up 29.5 sen to RM1.10 with 8.48 million units done. However, the company said it was unaware of any reason for the unusual market activity.

Ramunia’s unit has secured a RM23.62 million contract from Aquaterra Energy Ltd to fabricate two wellhead support structures.

Gas Malaysia Bhd is seeking a further extension of six months until Oct 6 from the Securities Commission to complete the proposed listing exercise. MMC Corporation said Gas Malaysia had applied to the SC for its approval for the six-month extension.

West River Capital Sdn Bhd (WRC) has rejected TSM GLOBAL BHD []’s request for better offer terms including the price and this has seen the latter resolving to consider other offers.

TSM said WRC’s offer price would remain at RM1.25 per share.

asiaEP’s major shareholder Tian Ee Intertrade Sdn Bhd has made a requisition for an EGM following the company’s decision to terminate its planned private placement, the firm said in statement to Bursa Malaysia on Tuesday. asiaEP shares rose 0.5 sen to close at nine sen.

RHB Research Institute has upgraded LAFARGE MALAYAN CEMENT BHD [] from an underperform to market perform and revised upwards its fair value by 25% from RM5.94 to RM7.43. The research house has also raised its earnings forecast for the cement producer by between 3% and 21% for FY12 to FY14 period. Lafarge shares rose five sen to RM7.26.

Bahamas-based Golden Knights International Ltd emerged a a major shareholder in marble products manufacturer Gefung Holdings Bhd with a 5.11% stake. This follows Golden Knights’ acceptance of its entitlement from Gefung’s rights issue. Gefung shares added one sen to 17.5 sen

YTL Corp Bhd saw heavy trading after its unit YTL Communications Sdn Bhd was reported to be in the midst of implementing the 1Bestarinet project in government schools. The initiative involves the setting up of Internet access to enable virtual learning environment in public schools. Shares of YTL Corp were up two sen to RM1.68 with some 21 million shares done.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Gas Malaysia seeks 6-month extension until Oct 6 for listing

KUALA LUMPUR: Gas Malaysia Bhd is seeking a further extension of six months until Oct 6 from the Securities Commission to complete the proposed listing exercise.

MMC CORPORATION BHD [] said on Tuesday that Maybank Investment Bank Bhd had, on behalf of Gas Malaysia, submitted an application to the SC for its approval for the six-month extension.

“Notwithstanding the above and as announced on Feb 17, 2012, MMC Corp was advised by Gas Malaysia that the proposed listing is expected to be completed by the second quarter of 2012,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

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.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

China Stationery jumps in listing debut

China Stationery Ltd, a China-based manufacturer of plastic stationery, jumped 7.4 percent to RM1.02 on its stock-exchange debut at 9.52am.

The company raised RM85.5 million (US$28.4 million) from selling 90 million shares at 95 sen each in its initial public offering. -- Bloomberg



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Listing will bring Felda Global to greater heights, says Dr M

KUALA LUMPUR (Feb 23): The listing of Felda Global Ventures Holdings Bhd (FGVH) will bring the Felda commercial arm to greater heights with the expansion of its current business and diversification of its business segments, former prime minister Tun Dr Mahathir Mohamad said on Thursday.

He said the listing was a great way to inject more capital and investment for the company as well as to ensure the settlers benefit.

"The settlers themselves cannot afford to buy shares and expand the company. So listing is one way to inject more capital and investment.

"At the end, the settlers will be given the same level of dividend. So, there is nothing to lose," he told reporters after launching the Malaysia OSV Owners' Association (OSV Malaysia) here.

On Wednesday, Felda chairman Tan Sri Mohd Isa Abdul Samad announced a plan to set up a special-purpose vehicle to ensure the settlers benefit directly from FGVH's listing as well as all future profits from the listed business. — Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Sentoria first to list on Bursa Malaysia in 2012

KUALA LUMPUR (Feb 22): Property developer Sentoria Group Bhd's listing on Bursa Malaysia's Main Market on Thursday, will be the first initial public offering (IPO) for 2012 and is estimated to have raised some RM51.6 million in proceeds.

Its offer of 20 million new shares at an 85 sen each to the public was oversubscribed by 5.4 times.

The listing exercise entailed a public issue of 60 million new ordinary shares and an offer-for-sale of 40 million promoters’ shares.

RHB Research Institute had accorded a fair value of 92 sen based on a 30% discount to its sum-of-parts valuation.

Sentoria is involved in property development and the leisure and hospitality business in Pahang. It developed a 547-acre integrated resort city, the Bukit Gambang Resort City (BGRC), in Gambang, Pahang.

The BGRC has a water park, active academy (for outdoor activities), provides facilities for meetings, incentives, conventions and exhibitions (MICE) and has accommodation for more than 2,000 people.

Sentoria planned to use more than half of the proceeds for its working capital, while the rest will be utilised to pare down its borrowings and to procure property, plant and equipment.

"Looking ahead, Sentoria plans to enhance its recurring income stream from BGRC, by adding new attractions such as Safari Park, Aquarium Park, Adventure Land, and expand the MICE division by constructing s grand ballroom with 3,050 pax capacity to increase the average revenue and length of stay per visitor," it said in the report.

The group's product mix will also be diversified with the CONSTRUCTION [] of themed villa's and commercial PROPERTIES [] to add development value to the acquired land, it added.

It expected Sentoria's net profit to grow by 10.2% in FY12 and 12.2% in FY13, as more facilities and attractions are fully operational by the end of the year.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

HDBSVR: Buying interest in Malaysian stocks to resume

KUALA LUMPUR (Feb 20): HwangDBS Vickers Research (HDBSVR) said buying interest in Malaysian stocks could resume on Monday due to better external sentiment.

“If so, then the benchmark FBM KLCI may pull away from its immediate support level of 1,555 ahead,” it said on Monday.

HDBSVR said although Wall Street saw mixed closings last Friday – ending between -0.3% and +0.4% – the futures markets were up on Monday morning. The DJIA March futures contract was trading at a 56-point premium to the spot rate at 8.15am Malaysian time, lifted by hopes that Greece is on track to receiving international financial aid.

In terms of share price actions, oil & gas counters may be in the limelight, including:

(a) Tanjung Offshore, which could be a merger & acquisition target according to a business weekly report;

(b) SapuraCrest Petroleum, after entering into a joint venture in relation to the building, CONSTRUCTION [] and operation of three pipe-laying support vessels pursuant to a previously secured contract to charter and operate the three vessels at a contract value of US$1.4 billion; and

(c) MMC Corporation, following its announcement that the listing of its subsidiary Gas Malaysia would be delayed from 1Q12 to 2Q12.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch: Shell, MMC, Sarawak Cable, Wing Tai

KUALA LUMPUR (Feb 18): Stocks on Bursa Malaysia could advance on Monday, Feb 20 following positive developments in Greece and China’s move to shore up the slowing economy.

Reuters reported late Saturday that Greece's cabinet tackled on Saturday how to implement austerity demanded by the EU and IMF as a 130-billion-euro (US $171-billion) rescue seemed within reach, while the euro zone considered modifying a deal with private creditors to help Athens reduce its huge debts.

In another development, China's central bank cut the amount of cash that commercial lenders must hold as reserves on Saturday for the second time in nearly three months, the latest step to shore up the slowing economy.

The People's Bank of China (PBOC) delivered a 50-basis-point cut in banks' reserve requirement ratio (RRR), effective from next Friday, Feb. 24, after repeatedly defying market expectations for such a move.

At Bursa Malaysia, stocks to watch include Shell Refining Company (Federation of Malaysia) Bhd, MMC CORPORATION BHD [], Sarawak Cable Bhd and Wing Tai Malaysia Bhd.

Shell Refining posted net losses of RM99.49 million in the fourth quarter ended Dec 31, 2011 compared to the net profit of RM114.66 million a year ago.

Shell attributed the losses due to weak refining margins which had also impacted the FY11 results, where it reported net losses of RM125.74 million.

MMC said on Friday the listing of its 41.8% owned Gas Malaysia Bhd on the Main Market of Bursa Malaysia Securities was delayed to the second quarter of 2012.

MMC said Gas Malaysia was “still in the midst of complying with the conditions imposed by the Securities Commission”.

Sarawak Cable has scrapped the MoU with Sinohydro Corporation (M) Sdn Bhd and KEC International Ltd to develop transmission lines in Sarawak.

This latest development could possibly see Sarawak Cable going alone to undertake the project.

On Aug 17, 2011, the three parties had signed the MoU to prepare and submit proposals for the project.

Meanwhile, Wing Tai Malaysia Bhd saw its major shareholder increasing its stake to 61.07% or 191.218 million shares with the recent acquisition of 2.20 million shares on Feb 17.

The Edge Malaysia reports that Century Logistics ahs put the FSU setback behind it. The service provider is confident of matching its 2010 record performance this year despite a minor setback with its floating storage units in 2H2011.

S P Setia Bhd reported that the Securities Commission has declined a ruling application sought by the joint offerors of S P Setia – Permodalan Nasional Bhd and S P Setia president and CEO Tan Sri Liew Kee Sin.

The joint offerors had decided not to appeal. However, the decision would not impact the joint offer.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Listing of Gas Malaysia delayed again to 2Q

KUALA LUMPUR (Feb 17): The listing of Gas Malaysia Bhd on the Main Market of Bursa Malaysia Securities has been delayed again and the listing is now expected to be in the second quarter of 2012.

MMC Corp, which owns 41.8% of Gas Malaysia, said the latter was “still in the midst of complying with the conditions imposed by the Securities Commission” for the proposed listing as stated in the Oct 7, 2011 approval letter.

“Barring any unforeseen circumstances, the proposed listing which was earlier expected to be completed by the first quarter of 2012, is now envisaged to be completed by the second quarter of 2012,” it said.

The Edge Financial Daily reported in November 2011, that the listing, originally planned for the fourth quarter, of that year would likely be postponed to the first quarter of 2012.

According to a previous announcement by MMC, one of the SC’s conditions was Gas Malaysia should ensured that its petrol stations are not built on land that is not designated for the purpose and for the company to rectify any non-compliance within a year of SC’s approval.

Gas Malaysia announced on Oct 19 that it had received the approval from the Economic Planning Unit for its listing, changes in shareholding structure and a proposed issuance of special redeemable preference shares to Petronas.

The company’s IPO comprises 333.84 million ordinary shares of 50 sen each. MMC officials had said the IPO could be set at RM2.20 per share.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Sentoria's public offer of 20m new shares oversubscribed 5.4 times

KUALA LUMPUR (Feb 14): Sentoria Group Bhd’s offer of 20 million new shares to the public at an 85 sen each under its listing exercise was oversubscribed by 5.4 times.

The company, which is seeking a listing on the Main Market of Bursa Malaysia Securities Bhd, received 6,829 applications for 127.2 million shares with a total value of RM108.1 million.

Sentoria’s listing exercise entailed a public issue of 60 million new ordinary shares and an offer-for-sale of 40 million promoters’ shares.

Of the 60 million new shares under public issue, 20 million were allocated for public balloting and 10 million shares for eligible directors, employees and business associates of the group at 85 sen per share. The other 30 million shares were allocated for private placement at 87 sen per share.

The 40 million promoters’ shares, allocated for Bumiputera investors approved by the Ministry of International Trade and Industry, were priced at 87 sen each.

Sentoria’s listing exercise raised RM51.6 million for the group, of which RM27.7 million would be for working capital; RM11.2 million for repayment of bank borrowings; RM9.0 million for purchase of property, plant and equipment; and the balance RM3.7 million to defray listing expenses.

Sentoria, which is scheduled to list on the Main Market of Bursa Malaysia on Feb 23, is the developer and operator of Bukit Gambang Resort City in Kuantan.

The integrated resort city covering 547 acres offer attractions including the Bukit Gambang Water Park and Active Academy, as well as facilities for meetings, incentives, conventions and exhibitions and 998 accommodation rooms for families and corporate groups.

For the 10-month period ended July 31, 2011, group revenue rose 53.4% to RM143.7 million from RM93.7 million in the previous corresponding period. Group net profit rose by 222.0% to RM38.1 million from RM11.9 million.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Spotlight on China stocks

Consumer sector
Maintain overweight: The Edge Financial Daily reported on Monday that the recent listing of Chinese companies in Hong Kong at higher price-earnings ratios (PER) may spark a re-rating of China-based stocks listed on Bursa Malaysia. Valuations of these stocks are still cheap.

Right from their IPOs, China-based companies listed on Bursa are trading at huge discounts to their book values (BV) and are at very low PER.

Their weak share price performance is mainly due to investor scepticism of Chinese stocks listed in overseas bourses in view of numerous accounting issues dogging such companies listed in the US and Singapore.

The Chinese companies listed on Bursa are currently trading at extremely cheap PER of about two times.

China Stationery Ltd (CSL), slated to list on Bursa at a PER of around six times, is a China-based integrated plastic stationery company.

Compared with other Chinese companies listed here, CSL’s valuation will be at the higher end of the spectrum.



As such, a re-rating could be in store for the other listed China-based companies if CSL’s IPO is well received, which will bring public attention back to these stocks. Chinese shoe sole manufacturer Multi Sports (“buy”, fair value (FV): RM0.78), which is under our coverage, has been performing steadily and delivering within our estimates.

We are still “overweight” on the consumer sector given its resilient earnings, low beta and decent dividend yields. QL Resources Bhd (“buy”, FV: RM3.62) and Padini Holdings Bhd (“buy”, FV: RM1.42) are our top picks in the consumer space for their solid track records and decent dividend yields. — OSK Research, Feb 13


This article appeared in The Edge Financial Daily, February 14, 2012.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Sentoria IPO oversubscribed by 5.4 times

Sentoria Group Bhd's public tranche under its Initial Public Offering (IPO) on the Main Market of Bursa Malaysia Securities Bhd has been oversubscribed by 5.4 times.

The company said it had received a total of 6,829 applications for 127.2 million shares with a total value of RM108.1 million, for the public tranche of 20.0 million shares under the Group's IPO.

"The oversubscription for our IPO indicates the investing community's confidence in our business strength and abilities to grow further in the theme park and resorts sector.

"We believe that the upcoming listing on the Main Market would enhance our balance sheet, which will give us ample opportunities to expand operations, including enriching the visitor experience at Bukit Gambang Resort City (BGRC).

"We are optimistic that our future projects will elevate the Group to greater heights," Head of Public and Investor Relations of Sentoria Group, Nasiruddin Nasrun said in a statement, today.

Sentoria, scheduled to be listed on Feb 23, will be the first IPO of 2012.

The company is also the developer of BGRC located in Kuantan, Pahang. It is, the first and largest water park resort city in the east coast of Malaysia. -- Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.