EITA Resources Bhd, an elevator manufacturer and distributor of electrical and electronics components and equipment is scheduled to be listed in Main Market on 9th April 2012.
The Initial Public Offering (IPO) consists of public issues of 23 million new ordinary shares and 17 million shares for sale at an IPO price of RM0.76 per share at RM0.50 par value.
Out of 23 million shares, 13 million shares are for private placement to selected investors, 6.5 million shares for application by Malaysian public and the remaining 3.5 million shares are made available to directors, employees and business associates of EITA Resources Berhad.
The IPO would raise RM17.5 million in proceed. The company intends to invest a total of RM12.3 million for the purchase of land, construction of the new factory and elevator test tower, as well as purchase of machinery.
EITA’s elevator systems are marketed under the EITA-Schneider brand. EITA provides end-to-end elevator systems services encompassing design, manufacture, installation, commissioning and maintenance of elevators in buildings.
EITA-Schneider elevators have been installed in Malaysia, Singapore, Laos, Vietnam, Philippines, Hong Kong and Saudi Arabia.
More information regarding the company can be found in EITA Resources Berhad webpage.
EITA Resources intends to distribute minimum 30% of their net profit at dividend. Based on 2010 figures and IPO price RM0.76, it translate to a dividend yield of 4.74%.
The table below is the financial summary for EITA Resources Bhd.
| FYE 2008 | FYE 2009 | FYE 2010 | FPE 2010 | FPE 2011 | |
|---|---|---|---|---|---|
| Revenue (RM’000) | 131,757 | 136,381 | 163,719 | 125,553 | 114,070 |
| Profit after Tax (RM’000) | 10,758 | 11,472 | 15,619 | 11,996 | 10,305 |
| Earnings per Share (sen)* | 8.28 | 8.82 | 12.01 | 9.23 | 7.93 |
| Price Earnings Ratio (x)* | 9.18 | 8.61 | 6.33 | 8.24 | 9.59 |
* Based on number of shares post IPO
AmInvestment Banks is the principal adviser and managing underwriter of the IPO.
For those who are interested in EITA Resources IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 30th March 2012 at 5pm. Tentative balloting date is on 3rd April while the allotment date is on 6th April 2012.
EITA Resources stock name in Bursa Malaysia is “EITA”.
View EITA Resources prospectus in Bursa Malaysia webpage.
What do you think about EITA Resources IPO? Are you going to subscribe?