IPO (Rating 3.75 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 28/10/15
Close to apply: 12/11/15
Listing date: 25/11/15
Fundamental
Market: ACE Market
Price: RM0.15
EPS: RM0.0133
P/E: 11.28x
NA after IPO: RM0.14
Debt ratio: 0.595 (Debt: RM136.747 mil, Asset: RM229.921 mil)
Dividend policy: no formal dividend
Business (distribution & warehousing)
F&B products, Personal care products,household products, baby care products, OTC Drug & Health supplememnts.
Main Revenue
Sabah : 90.80%
Labuan: 4.69%
Sarawak: 4.51%
Past Financial Proformance
2012: RM200 mil (EPS:RM0.0058)
2013: RM222 mil (EPS:RM0.0173)
2014: RM229 mil (EPS:RM0.0082)
2015: RM299 mil (EPS:RM0.0105)
After IPO Sharesholding
72.17% : Datin Lim, Lindfay Lau, Benedick Lau (all hold by KTC)
Use of fund
Acquasition of Warehouse in Sibu, Miri, Kuching: 42.26%
Construction of warehouse facilities: 9.39%
Purchase of equipment for warehouse: 14.07%
Working Capital: 22.07%
Listing Expenditure: 12.21%
Conclusion
Good thing is:
1. Revenue continue growing each years.
2. P/E 11.28x still consider at good price.
3. Net asset near to IPO price NA RM0.14
4. Debt ratio still consider healthy.
5. 87.79% IPO fund use to growth the business.
6. Large portion of shares hold by KTC, showing the good confidence level on their own company.
The bad things:
1. 101 bad thing to the company is will listing under ACE market.
2. Mother company KTC holding listed as public company before, & convert back into private limited company at 06/06/2014, this make investor worry after the new IPO will privatise again. This might also the reason the IPO at small & list in ACE market.
3. No formal dividend policy, however they are suggest to pay 20% of earning to sharesholders.
Conclusions
This is what we want!! IPO with honest, use IPO fund to expand business but not pay company debt.
However, it is very sad that this company will listing in ACE market. In overall, this is a good IPO.