Cabnet Holdings Berhad IPO

Cabnet Holdings Berhad, a building management solution provider is scheduled to be listed in ACE Market of Bursa Malaysia on the 22nd May 2017.

The Initial Public Offering (IPO) consists of 21 million new ordinary shares at an IPO price of RM0.56 per share. 10 million shares will be for institutional investors, private placement & selected investors, 7 million shares made available for Malaysia Public and the remaining 4 million shares made available to the directors, and employees and person who have  contributed to the success to the group.

The IPO will raise about RM11.76 million in proceeds. Out of this, RM5.26 million is for working capital and purchase of equipment, RM0.5 million will be use for R&D expenditure, RM3 millions for repayment of bank borrowings and the remaining RM3 million is for listing expenses.

The Johor-based group which is mainly involved in building management solutions provision, aim to increase its market presence in Johor while pursuing more opportunities for more projects beyond the state.

IPO will enable it to further enhance its financial position and gain access to the capital market to raise funds for expansion and growth when the need arises in the future.

The group also believes that the listing status would enhance its stature and increase market awareness of its products and services, which will help expand customer and supplier base.

More information regarding the company can be found in Cabnet Holdings Berhad webpage.

Cabnet Holdings intends to distribute between 30 percent of their Profit After Tax as dividend. Base on 2016 figures and IPO price of RM0.56, this translate to the dividend yield of 2.6 percent or 1.5 sen.

The table below is the financial summary of Cabnet Holdings .

FYE 2014 FYE 2015 FYE 2016
Revenue (RM’000)  34,065  39,591  50,844
Profit after Tax (RM’000)  4,518  5,852  6,410
Earnings per Share (sen)*  3.48  4.50  4.93
Price Earnings Ratio (x)*  16.11 12.44  11.36

* Based on number of shares post IPO
TA Securities is the principal adviser, sponsor, underwriter and placement agent of the IPO.

On the Moratorium on shares, the promoters of Cabnet Holdings IPO will not be able to sell, transfer or assign their entire shareholdings for a period of 6 months from the date of listing. For the subsequent 6 months, the promoters must hold at least 45 percent of shares of the total number of shares issued. The subsequent 6 months, the promoter may sell, transfer and assign up to maximum of one-third per annum of the shares held under moratorium.

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

The retail subscription period is opened until 18th May 2017 at 5pm. Tentative balloting date is on 11th May while the allotment date is on 18th May 2017. Cabnet Holdings stock name in Bursa Malaysia is “CABNET”.

View Cabnet Holdings prospectus in Bursa Malaysia webpage.

What do you think about Cabnet Holdings IPO? Are you going to subscribe?

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