Kanger International Berhad IPO

Kanger InternationalKanger International Bhd, bamboo flooring manufacturer is scheduled to be listed in ACE Market of Bursa Malaysia on 23rd December 2013.

The Initial Public Offering (IPO) consists of public issues of 80 million new ordinary shares at an IPO price of RM0.25 per share at RM0.10 par value.

Out of this, 11 million shares are allocated for application by Malaysian public and 6.9 million shares reserved for selected investors.

The IPO exercise is expected to raise RM20.0 million and the proceeds will be used for capital expenditure (RM1 mil), R&D (RM2 mil), repayment of bank borrowings (RM5.5 mil) working capital (RM8.2 million) and listing expenses (RM 3.3 mil).

Kanger International Bhd is the 10th China-based company to be listed on Bursa Malaysia.

The company specializes in the manufacturing and trading of bamboo flooring and related products for the residential and commercial markets under its brands Kanger and KAR Masterpiece, as well as acting as an original equipment manufacturer at the request of customers.

Kanger had a joint-venture unit with Forest Research Institute Malaysia (FRIM) since 2010 and that the collaboration would be further expanded with Kanger’s plant in Malaysia. The local plant will house Kanger’s research on local bamboo species similar to those in China that Kanger uses as raw material for its semi-finished flooring products.

More information about Kanger International can be found in their website.

Kanger International Berhad intends to pay 20 per cent of its yearly net profit as dividend. Base on 2012 figures, this is translate to dividend yield of 1.18 percent or 0.3 sen per share.

The table below is the financial summary for Kanger International Bhd.

FYE 2010 FYE 2011 FYE 2012 FPE Jun 2012 FPE Jun 2013
Revenue (RM’000) 14,836 23,411 38,556 20,183 21,378
Profit after Tax (RM’000) 969 2,281 6,369 2,124 2,517
Earnings per Share (sen)* 0.23 0.53 1.48 0.99** 1.17**
Price Earnings Ratio (x)* 110.94 47.13 16.88 25.31** 21.35**

* Based on number of shares post IPO
** Annualized
Kenanga Investment Banks is the sole adviser, sponsor, underwriter and placement agent of the IPO.

For those who are interested in Kanger International IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 13th December 2013 at 5pm. Tentative balloting date is on 16th December 2013 while the allotment date is on 22th December 2013.

Kanger International stock name in Bursa Malaysia is “KANGER”.

View Kanger International prospectus in Bursa Malaysia webpage.

What do you think about Kanger International IPO? Are you going to subscribe?

7 comments… add one
  • i think this is the most expensive China counter that is going to be listed on Bursa. @@

  • PER too high, DY too low, skipped…

  • Frankly, the past results look much more reasonable comparing to other china stocks. 0.25 a share could attract vast interest on the first day of trading. Will you guys apply?

  • What’s your target fair price for this stock?

  • what is the target price for this? good to subcribe?
    Will you apply for this IPO ?

  • Waiting for the fair value release..

  • I will post the target price when Research House publish it.

    For me, I skip this IPO. Good Luck for those who keen to apply.


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