MSM Malaysia Holdings Berhad Initial Public Offerings Will Be Oversubscribed | MSM IPO
I think the MSM Malaysia Holdings Bhd’s Initial Public Offerings(IPO) is expected to Oversubscribed as it has attracted a lot of interest from both potential local and foreign international investors
This don’t come surprise as it has small size of public offer.
MSM Malaysia Holdings Bhd is expected to be listed on the Main Market of Bursa Malaysia on 28th June 2011, will offer up to 234.56 million shares consists of the institutional offering of up to 206.4 million shares to Malaysian and foreign institutional investors, Ministry of International Trade and Industry (Miti) approved bumiputra institutional and selected investors, and Koperasi Permodalan Felda Malaysia Bhd (KPF) as well as a retail offering of 28.12 million shares to eligible employees and the Malaysian public.
The retail portion of 28.12mil shares will be priced at the lower of RM3.38 per share and 97% of the institutional offer price, which will be determined by way of book building.
Bursa Malaysia will have a big boost in the international investment community with the upcoming listing of MSM Malaysia Holdings Bhd.
It’ll help to further increase trading velocity and liquidity, enhance the quality and depth, of the stock market and the capital market in Malaysia.
MSM Malaysia Holdings Bhd based on the retail price of RM3.38 per share will attract market capitalization of RM2.4 Billions upon listing.
The domestic market offer a stable income for MSM Malaysia Holdings Bhd as the largest refiner in Asia.
A lot of Government, pension and Insurance funds such as EPFs, PNBs, etc, want to own a piece of pie of MSM Malaysia Holdings Bhd as a part of their share portfolio due proven business model and ability to provide stable income.
MSM Malaysia Holdings Bhd is a good defensive stock play as it offering 50% of its profit after tax as dividends.
You can expect a potential dividend yields of 5% based on earnings for FY2010 ended Dec 31.
This listing also seen as a test case to spur other government-linked investment companies to divest their shareholdings, allow MSM Malaysia Holdings Bhd to compete internationally and help expand the country’s global footprint in the sugar business space.
You must not miss the boat! 🙂