Boilermech Holdings Berhad IPO

Boilermech Holdings Bhd, a biomass boiler manufacturer is schedule to be listed in ACE Market on 5th May 2011.

Boilermech’s IPO consists of public issue of 34.9 million new ordinary shares at an IPO price of RM0.33 per share with RM0.10 par value. Out of this, 8 million shares are allocated to Malaysian public.

On top of new shares issues, 13.5 millions of existing shares are for sale to identified and Bumiputera investors.

The IPO will raise RM11.52 million in proceeds. Out of this, RM4 million is allocated for business expansion and RM3.32 million for working capital. Another RM2.5 million is to repay a term loan and the remaining RM1.70 million is for listing expenses.

Boilermech was established in 2005 & obtained registration from Department of Safety & Health (DOSH), Malaysia to manufacture boilers. Its products sell mainly to Malaysia and Indonesia but looking forward to expand to Ivory Coast, Sri Lanka, Thailand and the Solomon Islands. More information regarding the company can be found in Boilermech webpage.

Boilermech have no fixed dividend policy. Any dividends declaration is subjected to board and shareholders approval.

The table below are financial summary for Boilermech Holdings Bhd.

FYE 2008 FYE 2009 FYE 2010
Revenue (RM’000) 42,987 59,991 98,783
Profit after Tax (RM’000) 2,854 4,178 12,340
Earnings per Share (RM) 1.28 1.87 5.53
Price Earnings Ratio (x) 25.80 17.62 5.97

OSK Investment Bank is the sole principal adviser,managing underwriter,underwriter and placement agent for the IPO.

For those who are interested in Boilermech IPO you may subscribed at ATM machines or via Internet Banking. The subscription period is opened until 21th April 2011 at 5pm. Tentative balloting date is on 25th April while allotment date is on 3rd May 2011.

View Boilermech Holdings Bhd prospectus in Bursa Malaysia webpage. Boilermech Holdings Bhd stock name in Bursa Malaysia is “BOILERM”.

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

3 comments… add one
  • Is this a good buy?

  • Hi, I think it is good.

    Target Price/Fair value by Kenanga in RM0.48.

  • Hi,

    How to check whether this IPO is under syariah counter or not. I could not find it anywhere.


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