Perak Transit Berhad IPO

Perak TransitPerak Transit Berhad, a public transportation services provider is scheduled to be listed in ACE Market of Bursa Malaysia on the 6th October 2016.

The Initial Public Offering (IPO) consists of 245 million new ordinary shares at an IPO price of RM0.15 per share at RM0.10 par value. 187 million shares will be for private placement & selected investors  and the remaining 58 million shares made available for Malaysian Public.

The IPO will raise about RM36.75 million in proceeds. Out of this, RM20 million for business expansion, RM2.11 millions for repayment of hire purchase facilities, RM10.48 million for working capital & the remaining RM4.16 million is for listing expenses.

Perak Transit is principally involved in the operation of Terminal AmanJaya integrated public transport terminal in Ipoh, provision of public bus services as well as the operation of four petrol stations in Perak.

The integrated public transport terminal operation is their main income contributor, coming from services such as the rental of advertising and promotional spaces, rental of shops and kiosks, project facilitation fees, lavatory fees, bus and taxi entrance fees and car park fees.

The company intends to adopt new advertising and promotion (A&P) channels such as digital platforms with new media digital capabilities that can leverage on mobile, social and online technologies, as well as a planned increase of the A&P spaces for advertisement rental at Terminal AmanJaya.

The group also aims to utilise the existing underdeveloped land of 135,721 sq ft at the AmanJaya Terminal to further develop it into a commercial and lifestyle hub.

Perak Transit is acquiring 25 new express buses for RM480,000 per 28-seater express bus, which will increase its fleet size to 171 buses by year-end, from 146 buses currently. The purchase will be financed with a term loan.

The company also involved in the feasibility studies of the proposed integrated public transport terminals in Temerloh and Kemaman where it provides advisory services.

The group will also acquire new bus route permits to expand the network of its services, which will include 16 new stage bus routes under the Stage Bus Service Transformation Programme.

More information regarding the company can be found in Perak Transit webpage.

For the time being, Perak Transit intends to distribute up to 25 percent of its profit after tax as dividend. Base on 2015 figures, this translate to dividend yield of 2.8 percent or 0.42 sen per share.

The table below is the financial summary of Perak Transit.

FYE 2013  FYE 2014  FYE 2015 FPE 2015  FPE 2016
Revenue (RM’000)  64,394  77,578  74,123  22,699  25,443
Profit after Tax (RM’000)  7,213  13,483  19,189  6,772  5,391
Earnings per Share (sen)*  0.63  1.18  1.68  –  –
Price Earnings Ratio (x)*  23.77  12.72  8.93  –  –

* Based on number of shares post IPO
TA Securities is the principle adviser, sponsor, managing underwriter and placement agent while RHB Investment Bank and Bank Muamalat are the joint underwriters of the IPO.

On the Moratorium on shares, as per Securities Guidelines, the promoters of Perak Transit 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 Perak Transit IPO, you may subscribe at ATM machines or via Internet Banking.

The retail subscription period is opened until 23rd September 2016 at 5pm. Tentative balloting date is on 27th September while the allotment date is on 8th October 2016. Perak Transit stock name in Bursa Malaysia is “PTRANS”.

View Perak Transit prospectus in Bursa Malaysia webpage.

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