Westport Holdings Bhd, the operator of the country’s busiest port, is scheduled to be listed in Main Market of Bursa Malaysia on 18th October 2013.
The Initial Public Offering (IPO) consists of 813.19 million shares. 710.89 million are set aside for cornerstone/institutional investors and 102.3 million for Malaysian Public,employees and people who have contributed to the Westport group.
The retail price of the offering is RM2.50 per share at RM0.10 par value. The final retail price will be determine through book building exercise. If the final retail price is less than the retail price, there will be a refund to the retail investors.
The IPO will raise about RM2 billion in proceeds. However, the IPO does not include any fund raising for the company, Westports had said the listing was mainly to enhance its profile to market its services and establish liquidity for its shares.
Westports manages Malaysia’s main export gateway of Port Klang, said to be the world’s 12th busiest port. The cargo services firm had a 70% market share in container volume throughput as at 2012. The group plans to capitalise on continued growth in container traffic to strengthen its position as a preferred Malaysian gateway.
State-linked funds will take up about 90% of its institutional tranche and 45% of it are from eight cornerstones investors. This can shield the IPO from the current jittery regional markets. Among the cornerstone, investors are Employees Provident Fund, a state-owned fund management firm, civil servants’ pension fund and a pilgrim fund.
Among other names who have surfaced are Hwang Investment Management, Bermuda-based Utilico Investments and UK-based Genesis Investment Management.
More information regarding the company can be found in Westport Holdings webpage.
Westport Holdings intends to pay not less than 75 percent of its profit after tax as dividend. Base on 2012 figures, this translate to 3.2 percent dividend yield or 7.9 sen per share.
The table below is the financial summary for Westport Holdings Bhd.
|FYE 2010||FYE 2011||FYE 2012||6 mth ended 30th Jun 2012||6 mth ended 30th Jun 2013|
|Profit after Tax (RM’000)||284,856||316,473||360,960||160,270||198,396|
|Earnings per Share (sen)*||8.35||9.28||10.59||9.40**||11.64**|
|Price Earnings Ratio (x)*||29.93||26.94||23.62||26.60**||21.48**|
* Based on number of shares post IPO
Maybank Investment Bank is the principal adviser, managing underwriter for the Malaysia public offering of the IPO.
For those who are interested in Westport Holdings IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 27th September 2013 at 5pm. Tentative balloting date is on 2nd October while the allotment date is on 16th October 2013.
Westport Holdings stock name in Bursa Malaysia is “WPRTS”.
View Westport Holdings prospectus in Bursa Malaysia webpage.
What do you think about Westport Holdings IPO? Are you going to subscribe?