UOA Development Berhad IPO



UOA

UOA Development Bhd, a property development and construction company is schedule to be listed in Main Market on 8th June 2011.

The Initial Public Offering (IPO) consists of 407 million ordinary shares at an IPO price of RM2.90 per share at RM0.05 par value. However, the final retail price will be equal to the 97% of the institutional price.

Out of 407 million shares, 337 million shares are offered to Malaysian and foreign institutional and selected investors (including bumiputera investors approved by the International Trade and Industry Ministry) and a retail offering of 70 million shares to the Malaysian public, eligible directors and employees of UOA Development, its subsidiaries and persons who have contributed to the success of UOA and its subsidiaries

UOA Development a unit of Sydney and Singapore listed United Overseas Australia Ltd is involved in property development, construction and property investment. Its development projects are in matured and prime locations, centralized within the Klang Valley.

As at Dec 31, 2010, UOA Development has a total saleable and lettable area of more than 300,000 sq m of properties under development with an estimated gross development value (GDV) of RM2bil to be completed over the next three years.

The company has a further total potential saleable and lettable area of more than 1.2 million sq m being held for future development projects with an estimated GDV in excess of RM8bil.

More information regarding the company can be found in UOA Development webpage.

UOA Development intends to pay between 30 to 50 percent of profit after tax as dividend but it is subjected to board and shareholders approval. At an IPO price of RM2.90, the dividend yield is between 3.38 to 5.63 percent based on 2010 figures.

The table below is financial summary for UOA Development Bhd.

FYE 2008 FYE 2009 FYE 2010
Revenue (RM’000) 492,841 427,776 375,229
Profit after Tax (RM’000) 161,451 177,595 289,762
Earnings per Share (sen) 14.79 16.73 32.66
Price Earnings Ratio (x) 19.61 17.33 8.88

The underwriters for the IPO were CIMB Investment Bank Bhd, RHB Investment Bank Bhd, OSK Investment Bank Bhd, HwangDBS Investment Bank Bhd and Hong Leong Investment Bank Bhd

For those who are interested in UOA Development IPO, you may subscribed at ATM machines or via Internet Banking. The subscription period is opened until 25th May 2011 at 5pm for retail offering and 26th May for institutional offering. Tentative balloting date is on 27th May while allotment date is on 6th June 2011.

View UOA Development Bhd prospectus in Bursa Malaysia webpage.

What do you think about UOA Development IPO? Are you going to subscribe?


Leave a Comment

  • afiza 18th May, 2011, 10:46 pm

    is it syariah compliance?

    Reply
  • joselynhsu 18th May, 2011, 11:36 pm

    worth to subscribe? seems to be PE quite high in 2009 and 2008. total revenue also dropped in 2010.

    Reply
  • 1mdb.com 19th May, 2011, 3:18 am

    afiza,

    Yes it is shariah counter. They mentioned it in their prospectus.

    joselynhsu,

    From my point of view, it is worth because PE is low for 2010. Although, revenue dropping, PAT was higher.

    Reply
  • M Shariff Sulaiman 19th May, 2011, 1:18 pm

    How does UOA compare with other property companies like IGB or Glomac? Is it overpriced at RM3 and your comment on the 5 sen par. TQ.

    Reply
  • Sadun 19th May, 2011, 11:22 pm

    Please advice me whether can buy or not? I have no idea, and have no confident to buy.

    Reply
  • 1mdb.com 20th May, 2011, 5:19 am

    M Shariff Sulaiman,

    From my point of view, par value does not mean much as long as the PE ratio is low.

    Sadun,
    For me, I’m going to subscribe for this IPO.

    Some news – UOA gets EPF as cornerstone investor.

    Reply
  • neoh 20th May, 2011, 3:01 pm

    can UOA IPO subscribe from maybank2u? why i din’t find any IPO share ?

    Reply
  • 1mdb.com 20th May, 2011, 3:21 pm

    neoh,

    Normally, you should be able to. Sometimes, IPO application in Maybank2u coming slightly late. I can see it in CIMBClicks.

    Reply
  • Ipo lover 20th May, 2011, 10:04 pm

    Got to check the prospectus..i heard in prospectus stated online application (eIPO) only can be done via cimbclicks but u can apply via atm machines for other bank..correct me if im wrong ๐Ÿ˜‰

    Reply
  • azyyati 20th May, 2011, 10:11 pm

    The underwriters for the IPO were CIMB Investment Bank Bhd, RHB Investment Bank Bhd, OSK Investment Bank Bhd, HwangDBS Investment Bank Bhd and Hong Leong Investment Bank Bhd

    No Maybank rite? Of course you can’t subscribe it through maybank. ๐Ÿ™‚

    Reply
  • Marco 20th May, 2011, 10:14 pm

    Any dividend policy mentioned?
    I’m considering over this weekend.

    Reply
  • 1mdb.com 21st May, 2011, 1:10 am

    Ipo lover,

    I just look at section 20.6 of the prospectus, it only mentioned cimbclicks.com.my & eipocimb.com. So you are right.

    azyyati,

    I think its nothing to do with the underwriter.

    Marco,
    Yes, look at the post above for details.

    Reply
  • aimy 23rd May, 2011, 2:00 pm

    if i am a new investor and doesn’t have a CDS, can i still apply for this new IPO?

    Reply
  • 1mdb.com 23rd May, 2011, 2:07 pm

    aimy,
    Applying IPO without CDS account is not possible. You have to open CDS account & it is not difficult.

    Reply
  • kampunginvestor 24th May, 2011, 10:31 pm

    I have just checked Maybank2u and i dont see i there. Go to CIMB Clicks and it is there. ^^ I will be applying for sure! ^^ Going to the banks now…

    Reply
  • 1mdb.com 29th May, 2011, 1:39 pm

    Fair Value / Target Price by local stock brokers,

    OSK – RM3.57
    RHB – RM3.45

    Reply
  • Vin 10th June, 2011, 10:09 pm

    Do you think is worth to buy ?
    It seem like keep dropping since listing ~~
    I want to ALL IN Queve at RM2.50 ~ ๐Ÿ˜€
    Hope can help ya !! ๐Ÿ™‚

    Reply
  • 1mdb.com 13th June, 2011, 2:10 pm

    Vin, I still believe for for long term UOADEV should be OK but not sure what price to enter. The price still going down.

    Reply
  • anissue 6th July, 2011, 9:50 am

    What do u think gonna happen to this share? It’s really worrying, looking at the trend…

    Reply
  • 1mdb.com 6th July, 2011, 3:13 pm

    anissue, I think it will reach its lowest price & start to rebound but nobody know how low the price going to be.

    Reply
  • UOAD - The Titanic 6th July, 2011, 6:14 pm

    UOAD is sinking like a titanic today, dropped 10 sen to RM2.09. Lowest for the day is RM2.07. Why should the company get listed in the 1st place when it couldn’t even sustain its share price? The Company is suck. The SC and Bursa Malaysia should start their investigation into this sucker company and stop approving companies with low valuations for listing.

    Reply
  • Danny 26th August, 2011, 10:49 am

    I think this is a bull-shit counter! All our so-called professional stock analyst on this counter are either not trustworthy or they are just useless causing the general public to lose hefty sum of money by claiming that it is worth more than RM3.50.The SC should have suspended the counter from trading even when it fell to RM2.How can a counter fall to such a level at such a short time.

    Reply