BCM Alliance Berhad IPO

BCM AllianceBCM Alliance Berhad, a distributor of laundry equipment and medical devices is scheduled to be listed in ACE Market of Bursa Malaysia on the 24th October 2016.

The Initial Public Offering (IPO) consists of 84.25 million new ordinary shares and offer for sale 42.125 million shares at an IPO price of RM0.19 per share at RM0.05 par value. 95.375 million shares will be for private placement & selected investors, 22 million shares made available for Malaysian Public and the remaining 9 million shares made available to the eligible directors and employees of BCM Alliance Berhad.

The IPO will raise about RM16 million in proceeds. Out of this, RM2.6 million for setting up chain of self-service launderette outlets, RM7.7 millions for buying brand new equipment and medical devices, RM3.2 million for working capital & the remaining RM2.5 million is for listing expenses.

BCM Alliance principally involved in the distribution of equipment specialising in the commercial laundry and medical devices businesses in Malaysia.

The company intend to establish and set up 11 new Speed Queen self-service launderette outlets in major townships such as the Klang Valley, Johor, Penang, Melaka, Negeri Sembilan, Terengganu and Kelantan by end of 2018.

The Speed Queen self-service launderette outlets around Malaysia was expected to provide the company opportunity to establish and to expand its market presence and customer base in the commercial laundry equipment industry.

More information regarding the company can be found in BCM Alliance webpage.

For the time being, BCM Alliance does not have any fixed dividend policy.

The table below is the financial summary of BCM Alliance.

FYE 2012  FYE 2013  FYE 2014 FYE 2015  FPE Mar 2016
Revenue (RM’000)  19,063  35,379  51,027  64,335  14,841
Profit after Tax (RM’000)  209  2,008  5,623  6,126  1,812
Earnings per Share (sen)*  0.05  0.48  1.33  1.45  –
Price Earnings Ratio (x)*  382.95  39.86  14.23  13.07  –

* Based on number of shares post IPO
M&A Securities is the adviser, sponsor, underwriter and placement agent of the IPO.

On the Moratorium on shares, as per Securities Guidelines, the promoters of BCM Alliance IPO will not be able to sell, transfer or assign their entire shareholdings for six months from the date of listing. Upon expiry of the 6 months Moratorium, the company must ensure the promoters hold 45% of the nominal issue for another six months. Upon expiry the second 6 months Moratorium, the Promoter may sell, transfer or assign up to maximum of 1/3 per annum.

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

The retail subscription period is opened until 10th October 2016 at 5pm. Tentative balloting date is on 13th October while the allotment date is on 20th October 2016. BCM Alliance stock name in Bursa Malaysia is “BCMALL”.

View BCM Alliance prospectus in Bursa Malaysia webpage.

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