Chin Hin Group Berhad IPO

Chin Hin GroupChin Hin Group Berhad, a building materials supplier is scheduled to be listed in Main Market of Bursa Malaysia on the 8th March 2016.

The Initial Public Offering (IPO) consists of 63.2 million new ordinary shares and offer for sale of 65 million shares at an IPO price of RM0.65 per share at RM0.50 par value. 96.5 million shares will be for private placement & selected investors, 25.3 million shares to the Malaysian public and the remianing 6.4 million shares for eligible directors, employees & business associates of Chin Hin Group Berhad.

The IPO will raise about RM41.1 million in proceeds. Out of this, RM15 million will be use for new plant equipment, machineries & expansion of manufacturing facilities, RM15 million for repayment of bank borrowing, RM7.1 million million for working capital & the remaining RM4 million is for listing expenses.

The company aims to increase its export sales by RM40 million this year given the strong demand for the products. The current export sales are to four overseas markets — Australia, Singapore, Philiphines and Taiwan which contributed 1.7 per cent to the group’s RM833 million sales as of August last year.

On the manufacturing segment’s orderbook, the group has secured local orderbook of RM170 million which will keep it busy until 2018.

More information regarding the company can be found in Chin Hin Group webpage.

For the time being, Chin Hin Group does not have any fixed dividend policy.

The table below is the financial summary of Chin Hin Group.

FYE 2011 FYE 2012 FYE 2013 FYE 2014 FPE 2014 FPE 2015
Revenue (RM’000) 1,014,597  1,046,108  1,220,416  1,219,418  833,667  816,980
Profit after Tax (RM’000)  19,121  34,594  29,452  30,186  16,324  20,005
Earnings per Share (sen)*  3.78  6.84  5.82  5.97  –  –
Price Earnings Ratio (x)*  17.20  9.51  11.16  10.89  –  –

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

For those who are interested in Chin Hin Group IPO, you may subscribe at ATM machines or via Internet Banking.

The retail subscription period is opened until 25th February 2016 at 5pm. Tentative balloting date is on 1st March while the allotment date is on 4th March 2016. Chin Hin Group stock name in Bursa Malaysia is “CHINHIN”.

View Chin Hin Group prospectus in Bursa Malaysia webpage.

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