Friday, 18 April 2014

POSH may raise $311 mln in S'pore IPO

PACC Offshore Services Holdings (POSH) could raise at least S$388m (RM1bn) after pricing its IPO near the bottom of the pricing range indicated earlier. POSH priced the deal at S$1.15 a share against an indicative price range of S$1.13-1.24, it said in its prospectus. The company is selling 337.6m shares excluding the greenshoe option. "We priced it on a basis that we felt comfortable in terms of demand of institutional shareholders coming in," CFO Geoffery Yeo said. (Financial Daily)  

CSL asks for more time to submit accounts

China Stationery Ltd has applied for more time to submit its audited financial statements for the year ended 31 Dec 2013, which is due on 30 April. It said in a filing with Bursa Malaysia that it had applied for an extension of two months after fire at its plants in Fujian, China destroyed its financial records and company legal stamps. Its auditors, Messrs RT LLP said as a result of the fire incident, it was unable to issue an audit opinion on the group's financial statements for the financial year ended Dec 31, 2013. (Sun)

MSC to sustain good performance, says CEO

Malaysia Smelting Corp (MSC) is well-positioned to sustain its profitable performance going forward, according to its CEO Chua Cheong Yong. Chua said as MSC's troubled operations in Indonesia, PT Koba Tin, are close to being wrapped up, the group's strategy would be to enhance its core tin mining and smelting operations in Malaysia, which have been profitable. "We will focus on our core business divisions, namely the smelting operation, tin mining and international marketing," he told. (Financial Daily) 

7-Eleven IPO is expected to price at RM1.38/share

7-Eleven Malaysia Holdings Bhd is expected to price at RM1.38/share the tranche it will sell to cornerstone investors in an IPO that is likely to raise RM732m, IFR reported, citing people with knowledge of the deal. The convenience store operator is offering up to 530m shares in the IPO, with 491m allocated to institutional investors and the remainder to individuals. At RM1.38 per share, the selling price translates into a forward P/E multiple of 19.5x. Book building is expected to start in the first week of May. (Reuters, Financial Daily) 

1MDB may be eyeing power plant in India ahead of listing

1Malaysia Development Bhd is believed to be eyeing a power plant in India to expand its power generation business ahead of its planned listing. Bankers, however, are believed to be uncomfortable with the financing plan to acquire the asset in India, given its already heavy balance sheet. However, sources said 1MDB was looking to fund the purchase by tapping into the cash resources of its existing power plants, something that bankers are not happy with.

  • "Bankers are against the idea because cashflow and equity in the existing power plants are ring-fenced against the borrowings. Its cash cannot be utilised to fund new acquisitions. It would be against the debt covenants," said a source. (Star) 

Sales of passenger and commercial vehicles in March increased 2.3%

Sales of passenger and commercial vehicles in March increased 2.3% to 58,919 units from 57,622 units in the same month last year. The Malaysian Automotive Association (MAA) said out of the 58,919 units, 52,122 were passenger vehicles and the remaining 6,797 were commercial vehicles. It said the sales volume in March was also higher than February by 16.2%. MAA attributed the better sales to the delivery of new models, the rush for delivery by companies having their financial year ending 31 March, and the longer working month. (Financial Daily) 

KLCC Property plans to buy more assets in KL's Golden Triangle

KLCC Property Holdings (KLCCP) plans to acquire more assets in Kuala Lumpur's Golden Triangle this year, after receiving shareholders' nod to issue new shares of up to 10% of its share capital - to raise up to RM1bn. Group CEO Datuk Hashim Wazir said the property developer will scout for prime assets in the Golden Triangle that would optimize shareholder value. "We have sufficient headroom for more land acquisition and we are now open to look at assets that will meet shareholder value accretion in terms of asset value, and that will give us the the increase in terms of distribution," he told. (Financial Daily)