MSM Malaysia Holdings Berhad Initial Public Offerings | IPO

MSM Malaysia Holdings Bhd will be listed on the Main Market of Bursa Malaysia on 28th June 2011 at RM3.38(Issue Price).

It’s expected to raise RM2.4 billion and plans to acquire land in the Asean region for sugarcane planting in order to ensure availability of sugar.

This is in line with MSM Malaysia Holdings Bhd strategy to diversify overseas and expand production capacity through strategic acquisitions or investments, particularly in South-East Asia.

MSM Malaysia Holdings IPO

This big initial public offering (IPO)  offer up to 234.56 million shares to Malaysian and foreign institutional investors, including Bumiputera investors approved by the Ministry of International Trade and Industry as well as Malaysian retail investors.

We are know that Robert Kuok is also known as Sugar King of Malaysia.

This not true any more today as his sugar operations(MSM Malaysia, previously known as Malayan Sugar Manufacturing Co, and its related businesses, from PPB Group Bhd ) were sold to Federal Land and Development Authority (Felda) for RM1.25 billion two years ago.

MSM Malaysia Holdings Berhad

MSM Malaysia Holdings Berhad is a unit of Felda Groups and it is Malaysia’s dominant sugar producer controlling 70 per cent of the domestic market.

MSM Malaysia Holdings Bhd market the sugar using the brand called Gula Prai and Gula Perlis.

It operate two sugar refineries:

1) Prai (Penang)

2) Chuping (Perlis)

Offering Statistics

Issuer = MSM Malaysia Holdings Berhad

Issue Price =(RM) 3.38

Par Value (RM) =0.50

Board =Main Market

Sector =Consumer Products

The retail portion of 28.12 million shares will be priced at RM3.38 and 97 per cent of the institutional price will be determined by way of book-building process.

Public Issue :

Malaysian Public =14,060,000

Private Placement =96,880,000

Directors,Employees, Business Associates =14,060,000

Offer for Sale :

Private Placement =109,564,700

Adviser(s)= CIMB Investment Bank Berhad

Listing Schedule

Prospectus Date=  02/06/2011

Opening of Applications= 02/06/2011

Closing of Applications= 13/06/2011

Tentative Balloting Date= 15/06/2011

Tentative Allotment Date= 24/06/2011

Tentative Listing Date= 28/06/2011

How to apply MSM Malaysia Holdings Bhd IPO?

1) Using manual IPO form. The form can be downloaded from CIMB e-IPO service web site.  You need to buy bank draft and send via snail mail or by hand to MIDF Consultancy and Corporate Services Sdn Bhd at Level 8, Menara MIDF, 82 Jalan Raja Chulan, 50200 Kuala Lumpur. P.O.Box 11122, 50736 Kuala Lumpur.

2) ATM machines

3) Internet share application via online banking

** Please check the fee charged before using any of above services and shop wisely!

CIMB Investment Bank Berhad’ e-IPO Services(Internet share application) charge   a processing fee of RM2.00 per application vs applying for IPOs (Initial Public Offerings) online via Maybank2u.com which charge RM1 per IPO

I think the performance of this IPO will be same like Malaysia Marine and Heavy Engineering Holdings Bhd (MHB).

The offer price of RM3.38 is an auspicious feng shui number  🙂

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