Friday, February 08, 2013

New Items

0400GA : Saw it trading today, listing at RM100 ... the most pricey stock trading in KLSE now. I think it is the new sukuk they were talking about. Have not checked on that.

CAP : Newly listed.. Consumer Association of Penang. Shot up to RM1.28 on first day for distributions to greedy punters, and now trading at 46cents.

Malakoff is the most waited IPO this year ... but with GE around the corner, retailers may not be so excited.

PETALING JAYA: Malakoff Corp Bhd's planned listing will lead to a deleveraging exercise of parent MMC Corp Bhd, giving the latter a healthier balance sheet and enhancing its future fund-raising abilities, said analysts.

This comes on the fact that post-Malakoff listing, MMC's stake in it will be reduced from 51% to 37.8%, rendering Malakoff an associate company rather than a subsidiary. MMC has a total debt of RM21.7bil, of which RM15bil is in Malakoff.

“The listing of Malakoff will make it an associate company and, therefore, take this debt off MMC's balance sheet,” opined CIMB Research in a report.

The research house said of the remaining RM6bil debt, RM2bil was in the Port of Tanjung Pelepas, RM1bil in Johor Port and MMC's water business, while RM3bil sat at the holding company level.

“The RM3bil of holding company debt is the main issue, with some of the proceeds from the Malakoff initial public offering (IPO) helping to lighten the load.

“The value of its land bank at RM25 per sq ft, theoretically if sold out, would net off all of the debt at the holding company level,” CIMB Research said.

On top of the listing, MMC has also indicated that it intends to actively start unlocking the value of its land bank, which is centred in the Iskandar region. MMC owns 2,634 acres of industrial land around the Senai airport.

Last month, MMC announced that the Malakoff IPO would involve 760.87 million shares, comprising a public issue of 500 million new shares and an offer for sale of 260.87 million new shares. The total number of shares up for sale in the IPO represented 30.4% of the company's enlarged share capital post-listing.

It has been widely reported that the IPO would be worth about US$1bil (RM3bil).

“Whatever the IPO fetches, one thing is certain MMC's balance sheet will improve overnight. Its (MMC) debt burden will be lightened and its balance sheet will improve tremendously, reducing its debt-to-equity ratio, giving room for it to raise fresh capital,” a local bank-backed analyst said.

The analyst added that a lighter MMC would enable the conglomerate to increase its dividends to attract investor interest, one of the reasons why the counter lacks shine at the moment.

Based on Bloomberg data, there are six analysts having a “buy” call on MMC, with two “holds” and one “sell”. Meanwhile, Malakoff said in its draft prospectus that it aimed to pay between 50% and 75% of its net profit as dividends. “We propose to pay dividends out of cash generated from our operations after setting aside the necessary funding for capital expenditure and working capital requirements.

“As part of this policy, our company targets a dividend payout ratio equivalent to between 50% and 75% of our consolidated profit, attributable to our equity holders under the MFRS (Malaysian Financial Reporting Standards), beginning Jan 1, 2013,” Malakoff said.

Taken from The Star 9th Jan 2013

REITS : Do consider some of them when market re-adjust.

CNY break is good time to do some readings and preparing for the GE stock-watch list. It is 4-5 yrs once ... in market to profit hugely. Current ruling gov has till 28th April ... and see if they will really drag till then. But, no trading ... till then. Just short term trading, profitting few dollars for some dinners, if lucky.

Charity : One of my e-tratle message me and said he wants to donate RM50 ... and thinking of placing it to my tratles charity funds. Well, I do not take money from others ... except passing the hats around to those of tratles who knew me personally, and wishing to contribute. For CNY, I will be too busy ... and with the left-over of RM1k, I hv bought RM500 items ... another RM500 to be bought next week and distribute all ... and the funds will be cleared. Next round of collections will be nearing to June, when I am slightly 'free'.

Penang Trip : I received an e-mail from a reader, citing that he wish to meet me if I really go to Penang. He has just added in one more reason for me to make the long trip up. Thanks. Will be glad to meet few readers. Most probably on 15th Feb as 14th Feb is a V-day?

Tonight will be a start of my cleaning session as I do still have classes till 6pm today. Tmr will be whole day clearing and cleaning. Phew ... many items and adding ... new items.

Have a nice time cleaning.


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