Datasonic Group Berhad IPO

Datasonic Group Bhd, a leading secure ID and smart card personalisation solutions provider is scheduled to be listed in Main Market of Bursa Malaysia on 3rd September 2012.

The Initial Public Offering (IPO) consists of public issues of 20.4 million new ordinary shares and offer for sale of  7.9 million shares existing shares at an IPO price of RM2.00 per share at RM0.50 par value.

Out of 20.4 million new ordinary shares, 1.8 million shares are for private placement to selected investors, 8.5 million shares for Bumiputera investor approved by MITI, 6 million shares for application by Malaysian public and the remaining 4 million shares are made available to directors, employees and persons who have contributed to the group.

The IPO would raise RM40.8 million in proceeds.  Of these, RM27.1 million would be used for capital expenditure, RM6 million will be set aside for research and development, RM5 million for working capital and the remaining RM2.65 million for listing expenses.

A huge chunk of our capital expenditure will go for the setting up of proposed new premises for the company headquarters and manufacturing plant.

Datasonic is the only ICT vendor involved in three major smart card programmes in Malaysia, namely making MyKad, bank card or ATM chip-based smart card, and Europay, MasterCard and VISA chip-based credit card.

The company also formed business partnerships with global ICT players in the US, Germany, Italy, Switzerland, China, Japan and South Korea.

More information regarding the company can be found in Datasonic Group Berhad webpage.

Currently, Datasonic Group Berhad does not have any fixed dividend policy.

The table below is the financial summary for Datasonic Group Bhd.

FYE 2008 FYE 2009 FYE 2010 FYE 2011  FPE Feb 2011 FPE Feb 2012
Revenue (RM’000)  27,524 32,149 39,551 78,407  7,303  17,316
Profit after Tax (RM’000)  8,580 9,103 7,612 15,880  2,250  5,695
Earnings per Share (sen)*  9.53 10.11 8.46 17.64  2.5  6.33
Price Earnings Ratio (x)*  20.98 19.77 23.65 11.34  –  –

* Based on number of shares post IPO

Alliance Investment Banks is the principal adviser, underwriter and placement agent of the IPO while Main Street Advisor is the joint adviser and HWANGDBS Investment Bank is the joint underwriter.

For those who are interested in Datasonic IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 17th August 2012 at 5pm. Tentative balloting date is on 23rd August while the allotment date is on 30th August 2012.

Datasonic Group stock name in Bursa Malaysia is “DSONIC”.

View Datasonic Group prospectus in Bursa Malaysia webpage.

What do you think about Datasonic Group IPO? Are you going to subscribe?

4 comments… add one
  • Main activities this IPO is produce the secure ID example myKAD..mean they have cooperate with government..what ur comment TT?

  • In my opinion in could be better than Pasukhas….because Data profits has been steadily increasing. Maybe worth a shot?

  • Still not sure. Bought Pestech a company with contracts with TNB but the price fell below IPO. Any expert takes on Datasonic.

  • In general Datasonic looks like a promising stock. I am sceptical about this company as no dividend policy in place. I believe the net profit will continue to grow. The lacking of investor’s confidence is the issue to be solved.Investor want some cash out if company earn profit.

    My opinion is that investors do not have great expectation on Datasonic on future growth, which large relying on R&D and government contracts. We don’t have confidence a Malaysian tech company can excel outside Malaysia. This is what I feel. In U.S., it would be a different case. Plus, I project great uncertainty as the next election is coming soon. A sudden change of politic environment may affect some “revenue” in government contracts.

    Anyway, if Datasonic had dividend policy in place, I would have subscribed the IPO since the downside risk is lower.


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