OldTown Berhad IPO

White Coffee

OldTown Bhd, the “kopitiam” chain operator and instant beverage mix manufacturer, is schedule to be listed in Main Market on 13th July 2011.

The Initial Public Offering (IPO) consists of 96.4 million ordinary shares at an IPO price of RM1.25 per share at RM1.00 par value.

Out of 96.4 million shares, 48.4 million shares will be allocated for private placement, 10 million for the Malaysian public, and five million for eligible directors, employees and business associates of the group.

OldTown Bhd, expects to raise RM79.2 million from its initial public offering (IPO). Out of these, RM52 million will be invest to build a new plant in Kawasan Perindustrial Tasek, Ipoh and RM19.7 million from the proceeds would be used to acquire 17 companies not yet owned by OldTown.

OldTown planned to open 300 outlets in three years from current 182 in Malaysia, Indonesia and Singapore.

More information regarding the company can be found in OldTown Berhad webpage.

OldTown intends to distribute minimum 50% of their net profit at dividend. Based on 2010 figures and IPO price RM1.25, it translate to 4.78% dividend yield.

The table below is financial summary for OldTown Bhd.

FYE 2007 FYE 2008 FYE 2009 FYE 2010
Revenue (RM’000) 79,186 138,437 193,686 255,133
Profit after Tax (RM’000) 10,904 20,569 30,338 31,872
Earnings per Share (sen) 4.06 7.67 11.34 11.89
Price Earnings Ratio (x) 30.56 16.20 10.98 10.46

AmInvestment Bank Bhd is the principal adviser, managing underwriter, joint underwriter and joint placement agent while CIMB Investment Bank Bhd is the joint underwriter and joint placement agent for the IPO exercise.

For those who are interested in OldTown IPO, you may subscribed at ATM machines or via Internet Banking. The subscription period is opened until 29th June 2011 at 5pm. Tentative balloting date is on 1st July while allotment date is on 6th July 2011.

OldTown Berhad stock name in Bursa Malaysia is “OLDTOWN”.

View OldTown prospectus in Bursa Malaysia webpage.

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

Leave a Comment

  • SK 22nd June, 2011, 4:25 pm

    Will try my luck to get some, but not plan to hold it for long term, what do you think?

  • Dali 22nd June, 2011, 6:43 pm

    Ipo price is 1.25 nor 1.50.

  • 1mdb.com 22nd June, 2011, 8:04 pm

    SK, yes agree with you. I may apply too but sell it all on the first day.

    Dali, it was typo error. It should be RM1.25.

    • DC 23rd June, 2011, 12:12 pm

      wat make u decide to sell it all on the 1st day? Please advise, thanks.

  • 1mdb.com 23rd June, 2011, 1:01 pm

    DC, if you watch the first day price on many IPO, you will see that the price may go as high as 4 times the IPO price. After that, it slowly dwindling down back to IPO price or even lower. So why wait.

    This is of course does not include big IPO such as PCHEM or MHE.

  • king 23rd June, 2011, 1:02 pm

    but i thk old town is a quite potential company

  • 1mdb.com 23rd June, 2011, 2:54 pm

    king, why you say it OldTown is potential company? But remember even big & have potential company like UOADEV also suffered after listing.

  • Julian 23rd June, 2011, 9:29 pm

    my prediction is sell immediately on the first day if you manage to get the IPO at 1.25. Price will goes up on the first day but not consistenly ups and it’s on downward trend. If you were to hold this stock after few more days, price are likely to bounce back below the IPO price.cheers.

  • doubtful 26th June, 2011, 12:10 am

    don’t you think the company have too high goodwill and negative reserve

  • king 26th June, 2011, 8:53 pm

    I thk so because , the public always say food and beverage company a lot of competitors , although old town have alot of competitors , they still can earn money and listing in bursa , they strong in their marketing strategy ..that my opinion

  • 1mdb.com 28th June, 2011, 3:12 pm

    Fair value / Target price,

    HWangDBS – RM1.50
    OSK – RM1.34
    TA – RM1.33

  • Charicho 5th July, 2011, 2:14 am

    Dun worry.. This is Vincent Tan funds… Let see on the movement after few days listing.. Cheers

  • drnumberuntung 10th July, 2011, 9:13 pm

    this share just 10x oversubscribe.. any chances the share is going to be goreng by any speculator?. by the small number of share in the market is another factor of easy target by speculator