Tambun Indah Land Bhd (TILB) Initial Public Offering (IPO) received an overwhelming response with its Malaysian public portion of 11.05 million shares. It was oversubscribed by 14.9 times.
The IPO attract 10,751 applications or 175.7 million shares with a total value of RM123 million. For the Bumiputera portion, a total of 4,362 applications for 59.5 million shares were received which represents an oversubscription rate of 9.78 times.
The Public Issue and Offer for Sale exercise comprises;
K Seng Seng Corp Bhd (KSSC), a supplier of secondary stainless steel products, is schedule to be listed in Main Market on 18th January 2011. The company, was established in 1985 under the name of Vinylon Industries Sdn Bhd. On 20 June 1986, the companny name was changed to K. Seng Seng Sdn Bhd
KSSC’s IPO consists of a public issue of 20 million ordinary shares at an IPO price of RM0.57 per share with RM0.50 par value.
6 million shares will be allocated for the Malaysian public, 9 million shares for identified bumiputera investors and 5.1 million shares for eligible directors, employees and business associates of the group. On top of that 22.2 million shares will be allocated for placement to identified investors.
In 2010, there is 29 new Initial Public Offering (IPO) compare to 14 in 2009. Out of 29 listings, 23 companies were listed on the Main Board of Bursa Malaysia, while the rest were on the ACE Market.
How do they performed?
Based on data compiled from Bursa Malaysia, 17 out of 29 stocks closed higher than their offer price on the listing date. However, on 30th December 2010, the last trading day, only 12 closed higher than offer price. Seem like IPO stocks performance in 2010 is not very encouraging.
In January 2011, 3 more IPOs will be listed in Bursa Malaysia. They are K. Seng Seng Corporation, Benalec Holdings and Tambun Indah Land. With 2010 IPO performance data, are you going to subscribe to 2011 IPO?
The table below are the summary of 2010 IPO performance.
Benalec Holdings Bhd, Malaysia’s second largest marine construction firm, is schedule to be listed in Main Market on 17th January 2011. The company, was established in 1978 is also eyeing to expand its marine construction services regionally especially in Indonesia and Vietnam.
Benalec’s IPO consists of a public issue of 100 million ordinary shares at an IPO price of RM1.00 per share with RM0.25 par value.
36.5 million shares will be allocated for the Malaysian public, 57 million shares for private placement and 6.5 million shares for eligible directors, employees and business associates of the group. On top of that 130 million shares will be allocated for placement to identified investors.
Tambun Indah Land Bhd (TILB), a leading property developer in Penang, is scheduled for a main-market listing on 18th January 2011. The company was established in 1995, will continue to focus on the property market in Penang but also eyeing for landbank in the Klang Valley like in Shah Alam and Kajang.
Currently, TILB has enough funds for expansion but decided to go for a listing as it wants to raise the company’s profile and build confidence among its associates and customers.
Tambun Indah’s IPO consists of a public issue of 32 million new ordinary shares at an IPO price of 70 sen per share with RM0.50 par value.