FoundPac Group Berhad IPO



foundpac-groupFoundPac Group Berhad, a Penang-based semiconductor group is scheduled to be listed in Main Market of Bursa Malaysia on the 29th December 2016.

The Initial Public Offering (IPO) consists of 40 million new ordinary shares and offer for sale of 92 million shares at an IPO price of RM0.54 per share at RM0.10 par value. 103 million shares will be for private placement & selected investors, 18.5 million shares made available for Malaysian Public and the remaining 10.5 million shares made available to the eligible directors, employees and business associates of FoundPac Group Berhad.

The IPO will raise about RM21.6 million in proceeds. Out of this, RM8 millions for purchase of property, plant & equipment, RM4 millions for overseas expansion,  RM3.6 million for working capital, RM3 million for D&D expenditure & the remaining RM3 million is for listing expenses.

FoundPac established its operations in 2005, principally involved in the design, development, manufacture, marketing and sale of precision engineering parts namely stiffeners, test sockets, hand lids and related accessories.

The group’s products are exported for the most part to various international markets primarily in Europe and the US, with the US market constituting almost 73.0% of FoundPac’s sales in FYE2016. The group has worked with a number of well-known established electronic companies over the years, including Broadcom Corp, which is a US fabless semiconductor company.

More information regarding the company can be found in FoundPac Group webpage.

FoundPac Group intends to distribute 30% of its annual profit after tax as dividend. This figure represent the dividend yields of  2.47 percent or 1.3 sen for FYE 2016..

The table below is the financial summary of FoundPac Group.

FYE 2014  FYE 2015  FYE 2016
Revenue (RM’000)  30,204  34,370  44,108
Profit after Tax (RM’000)  9,211  12,898  16,432
Earnings per Share (sen)*  2.49  3.49  4.44
Price Earnings Ratio (x)*  21.69  15.49  12.16

* Based on number of shares post IPO
TA Securities is the principal adviser, sole underwriter and sole placement agent for the listing exercise of the IPO.

On the Moratorium on shares, as per Securities Guidelines, the promoters of FoundPac Group IPO will not be able to sell, transfer or assign their entire shareholdings for six months from the date of listing.

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

The retail subscription period is opened until 19th December 2016 at 5pm. Tentative balloting date is on 21st December while the allotment date is on 27th December 2016. FoundPac Group stock name in Bursa Malaysia is “FPGROUP”.

View FoundPac Group prospectus in Bursa Malaysia webpage.

What do you think about FoundPac Group IPO? Are you going to subscribe?


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