Hiap Huat Holdings Berhad IPO

Hiap Huat HoldingsHiap Huat Holdings Bhd, a licensed waste oil recycler is scheduled to be listed in ACE Market of Bursa Malaysia on 26th November 2012.

The Initial Public Offering (IPO) consists of public issues of 85 million new ordinary shares at an IPO price of RM0.20 per share at RM0.10 par value.

Out of 85 million new ordinary shares, 50 million shares are for private placement to selected investors and 5 million shares for application by Malaysian public.

The IPO also offer for sale 50 million shares to selected investors.

The IPO would raise RM17 million in proceeds.  The proceed would be used for working capital (RM8.2 million), capital expenditure (RM4.5 million) repayment of bank borrowings (RM2 million) and listing expenses (RM2.3 million).

Hiap Huat’s principal activity is in the niche business of collecting, recycling, re-refining and producing recycled products.

The group stores, treats and recycles waste collected from industrial and commercial establishments before formulating them into end products which are ready to be used by end consumers.

Its recycled end products derived mainly from its recycling and recovery process are sold under their own “AF1”, “Top Up”, “Nekko”, “Cap Rumah” and “Flag” brand brand names.

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

Currently, Hiap Huat Holdings Berhad does not have any fixed dividend policy.

The table below is the financial summary for Hiap Huat Holdings Bhd.

FYE 2008 FYE 2009 FYE 2010 FYE 2011 FPE  2011 FPE  2012
Revenue (RM’000)  49,237 34,060 34,930 40,839  19,884  18,285
Profit after Tax (RM’000)  1,950 1,688 5,185 6,056  3,340  2,741
Earnings per Share (sen)*  0.59 0.51 1.56 1.82  1.00  0.82
Price Earnings Ratio (x)*  34.18 39.49 12.86 11.01  –  –

* Based on number of shares post IPO

Hong Leong Investment Banks is the sole principal adviser, sponsor, underwriter and placement agent of the IPO.

For those who are interested in Hiap Huat Holdings IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 12th November 2012 at 5pm. Tentative balloting date is on 16th November while the allotment date is on 23rd November 2012.

Hiap Huat Holdings stock name in Bursa Malaysia is “HHHCORP”.

View Hiap Huat Holdings prospectus in Bursa Malaysia webpage.

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

8 comments… add one
  • is it worthwhile to apply for the IPO? at least it is better than AirAsia X which are making loss at the moment.

  • AAX has been making loss all these while actually.

  • for 20sen per share, can it go any much lower? the business model seems to be strong as long as motorists keep changing their oil at scheduled interval

  • Just bought 100 lots for RM2k. Hope its fruitful.

    • Good luck to you!. I skip this time as I will be travelling on the listing day.

  • will you guys apply for this IPO?

  • My dealer representative called this morning to inform me about this IPO.
    Told me it is 20 sen . I bought 2000 shares without hesitation.
    Now I need you guys to pray .

  • look dangerous! but now trader like cent counter, i believe it is worth the gamble.


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