UPCOMING IPOs

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XIN HWA HOLDINGS BHD

Xin Hwa Holdings Bhd, a logistic company, has plans to list but the date has yet to be confirmed. Some 37.8 million new shares will be issued, of which nine million will be made available to the public. Apart from that, there million shares will be given to directors, employees and other persons who have contributed to the success of the company and two million shares to bumiputera investors. The remaining shares will go to selected investors by way of a private placement.

As stated in Xin Hwa’s prospectus, about 75% of the proceeds will be used to expand its business, while the remainder will be used for working capital and to defray listing expenses.

For financial year 2013 ( FY2013) ended Dec 31, the company recorded a net profit of RM13.9 million, 9.4% higher than the RM12.7 million in 2012.

E.A. TECHNIQUE (M) BHD

E.A. Technique (M) Bhd operates marine vessels and provides port marine services and offshore storage services for oil and gas industry. The company is owned by Sindora Bhd, a wholly-owned subsidiary of Kulim (Malaysia) Bhd. According to Kulim, the proposed IPO is expected to see the issuance of 114 million new shares, whereby 25.2 million are allocated to the public via a balloting process and 78.8 million shares to institutional and selected investors. However, the listing price and date have yet to be determined.

The company plans to use 43.9% of the capital raised to reduce bank borrowings, 42.7% for capital expenditure and the remainder to defray listing fees. As stated in its preliminary prospectus, its allocation for capital expenditure will be used to buy an oil tanker, two platform supply vessels and two fast crew boats to grow the business.

For FY2013 ended Dec 31, boosted by a gain of RM37.5 million from the disposal of a subsidiary, E.A. Technique posted a net profit of RM56.9 million. This was more than double its net profit of RM18.91 million in FY2012.

CARIMIN PETROLEUM BHD

Carimin Petroleum Bhd intends to list on the Main Market of Bursa Malaysia with the issuance of 60.7 million new shares and 5.89 million existing shares under an offer for sale to selected investors.

As one of the winners of Petronas’ RM10 billion Pan Malaysia contract, the company intends to use 52.9% of the capital raised to buy an offshore supply vessel, 20.6% to develop a minor fabrication yard, 12.4% to reduce bank borrowings and the rest for working capital and to defray listing expenses within a period of 18 months. The listing date and price have yet to be determined.

For the past three years, Carimin grew at a compound annual growth rate of 27%. In FY2013, it recorded a net profit of RM19.5 million, 16% higher than the previous year’s RM16.8 million.

AK KOH GROUP BHD

AK Koh Group Bhd, a manufacturer and distributor of processed food and beverage (F&B) products, will offer 19.2 million new shares and 9.2 million existing shares to be listed on Bursa’s Main Market by the end of the year. The company manufactures F&B products such as soup mixes, sauces and seasonings, canned seafood, instant beverages and snack foods.

Based on its prospectus, the company will use 28.3% of the capital raised for marketing and promotional expenses (over three years), while another 28.3% will be used to repay bank borrowings (within three months). As a result, its gearing is expected to be reduced to 0.12 times, from 0.26 times.

AK Koh plans to use 22.64% of its proceeds to defray its listing expenses and the remaining 20.76% for working capital.

The company’s net profit for FY2013 rose 77.8% to RM42.3 million from RM23.7 million in FY2012, mainly owning to gain from disposal of properties amounting RM33.8 million.

Source from : personal money magazine, September 2014 edition.