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Astro Malaysia Holdings Berhad IPO

21st September, 2012

in Initial Public Offering

AstroAstro Malaysia Holdings Berhad, a pay-TV firm controlled by tycoon Ananda Krishnan is scheduled to be listed in Main Market of Bursa Malaysia on the 19th October 2012. The Initial Public Offering (IPO) consists of 1.52 billion shares at an indicative IPO price of RM3.00 per share.

Out of these, 597.69 million shares will be offered to Bumiputra investors, 661.75 million shares to other institutional and selected investors, while 259.865 million shares will be offered to retail investors.

The institutional price will be determined by way of book building while for the retail application, it is payable at RM3.00 upon application. If the final retail price is lower, the difference will be refunded accordingly.

The proceed from the IPO will be used for repayment of bank borrowing, capital expenditure, working capital and listing expenses.

The IPO has secured 22 cornerstones investors. Among them are  tycoon Chua Ma Yu, Kencana Capital Libra Investment Sdn Bhd, Great Eastern Life Assurance, Myriad Opportunities Masterfund, Nomura Asset Management, Antell Holdings Ltd, hedge-fund Azentus Global Opportunities Masterfund Ltd, Caprice Capital International Ltd, Cornstone Smith Asset Management, Gordel Capital, five units of Ochis-Ziff, TPG-Axon International, TPG Axon Partners and pension fund Universities Superannuation Scheme. Malaysian state-owned fund management firm Permodalan Nasional Bhd is the largest cornerstone investors.

The lock-up period for the cornerstone investors is three months.

Astro intends to pay 75 percent of profit after tax as a dividend. Based on At an IPO price of RM3.00 and 2012 figures, the dividend yield is 3% or 9 sen per share.

The table below is the financial summary of Astro.

FYE 2010 FYE 2011 FYE 2012 3 mth ended 30th Apr 2011  3 mth ended 30th Apr 2012
Revenue (RM’000)  3,242,334  3,664,065  3,888,801  908,366  986,028
Profit after Tax (RM’000)  613,926  827,479  629,616  196,289  123,365
Earnings per Share (sen)*  11.70  15.77  12.00  14.96**  9.40**
Price Earnings Ratio (x)*  25.64  19.03  25.01  20.05**  31.91**

* Based on number of shares post IPO
** Annualized
The IPO was handles by CIMB Group Holdings Bhd, Malayan Banking Bhd and RHB Capital Bhd. Several foreign banks are also advisers, including UBS AG, Credit Suisse Group AG, Goldman Sachs Group Inc and JPMorgan Chase & Co.

For those who are interested in Astro IPO, you may subscribe at ATM machines or via Internet Banking.

The retail subscription period is opened until 1st October 2012 at 5pm. Tentative balloting date is on 4th October while the allotment date is on 17th October 2012. Astro stock name in Bursa Malaysia is “ASTRO”.

View Astro prospectus in Bursa Malaysia webpage.

What do you think about Astro IPO? Are you going to subscribe?

{ 24 comments… read them below or add one }

bryan fang September 24, 2012 at 1:14 am

1-million-dollar-blog, are you going to subscribe ?

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1-million-dollar-blog September 24, 2012 at 8:53 am

I’m still not decided. How about you?

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bryan fang September 24, 2012 at 10:49 am

Properly will go for it, since every Malaysian know who is Astro and they doing very well now. And almost 30% share will fall in to Bumiputra, properly they wont sell it. So its may a hot share too.

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1-million-dollar-blog September 25, 2012 at 3:28 pm

Good luck to you :)

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TKH September 25, 2012 at 2:01 pm

Dear 1-million-dollar-blog,
What is Astro Malaysia Holdings Berhad’s fair value as rated by the many research houses?
Hope the Final Institutional Price will be near the lower range of RM2.70 so that upon listing, there will be a decent premium for this IPO to be “successful”.
Thank you.

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1-million-dollar-blog September 25, 2012 at 3:29 pm

TKH, I will post it this blog when the information become available.

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aurinko September 26, 2012 at 12:12 am

I am not comfortable with high PE ratio (more than 20x) and weak performance of first 4 months in this year.

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1-million-dollar-blog September 26, 2012 at 8:35 am

If the weak first quarter performance continue, dividend yield will be about 2.3 % only. Not looking good.

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1-million-dollar-blog September 26, 2012 at 8:35 am

Target Price / Fair Value

ECM Libra – RM3.09
OSK Research – RM3.37
TA – RM3.53

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TKH September 26, 2012 at 9:36 am

With such Price Earnings Ratio and Dividend Yield based on indicative price of RM3.00 , the Final Institutional Price has to be near the lower range of RM2.70 for this IPO to be considered successful.
If not, this may be the first time that Ananda Krishnan’s counter go below the offer price.

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1-million-dollar-blog September 26, 2012 at 10:04 am

Even at RM2.70, the dividend yield & PER is only marginally improved.

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DavidEphraim September 26, 2012 at 6:03 pm

I’m new to the Malaysian market. Having said that it looks like a good buy to me even at 3.00. Obviously 2.7 is better. I get the 20x pe but I think their fundamentals are good and their business model is good and most of all their service is grand. I’m an avid sports fan and boy I’m glad I wasn’t in the US during the Olympics; their coverage sucked.
P.S. I’ll keep watching this space for any updates. I do love to learn and I look forward to the continued analysis as we count down the days to the Astro IPO.

be kewl!

Reply

TKH September 27, 2012 at 9:35 am

Hi DavidEphraim,
Welcome to the Malaysian (market).
If you are an Astro subscriber, do you know that you can apply for their IPO using the special blue form? You can only apply for a fixed amount of 3,000 shares, i.e. you need to pay RM9,000 which is subject to refund if the Final Retail Price is lower than RM3.00
If you are successful, they will allocate 3,000 shares to you.
You may get the forms from any Astro Customer Service Centre.
Good luck.

Reply

Will- i -am September 28, 2012 at 10:20 pm

I heard blue form for subscriber already closed on 26.9.12 (Wednesday) any one can confirm this

Reply

TKH September 27, 2012 at 1:33 pm
m.khairuddin September 27, 2012 at 2:18 pm

blue forms are also available at securities firms
and major commercial banks

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CYKS September 28, 2012 at 12:28 pm

So..
Do you all think that Astro IPO will trade above RM3.00 during the first day of listing?

I am still thinking whether to IPO for it for a quick profit.

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1-million-dollar-blog September 29, 2012 at 12:35 pm

The institutional offer of Astro Malaysia Holdings Bhd’s US$1.5bil (RM4.5bil) initial share sale has been oversubscribed by more than 20 times.

The institutional offering of up to 315.75 million shares, or 20.8% of the total offering, had been mostly subscribed at the higher end of an indicative price range of RM2.70RM3.00 per share.

Reply

serd82 October 1, 2012 at 5:49 pm

1MDB,
do you apply or not..AK counters never let you down…so far…sure up upon listing

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1-million-dollar-blog October 1, 2012 at 7:51 pm

Yes I believe it too. With the high demand by the institutional investors, I think it should performing well upon listing. However, I decide not to apply this time as my fund still with IGB REIT.

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TKH October 4, 2012 at 10:54 am

Astro sets IPO price at top end of RM3.00

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CYKS October 4, 2012 at 2:57 pm

has the balloting result out yet?
Where can we check?

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TKH October 5, 2012 at 5:29 pm

You can check the basis of balloting at http://www.mih.com.my under “Press Release”.

Reply

Shawn October 8, 2012 at 12:03 pm

Hi

Can Singaporean subscribe this ipo? If yes how to do it? Thanks

Reply

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