Leon Fuat Berhad IPO

Leon FuatLeon Fuat Holdings Bhd, a company involved in the trading and processing of steel products is scheduled to be listed in Main Market of Bursa Malaysia on 5th June 2013.

The Initial Public Offering (IPO) consists of public issues of 59.31 million new ordinary shares and offer for sale of 31 million ordinary shares at an IPO price of RM0.60 per share and RM0.50 par value.

Out of this, 15.5 million shares are allocated for application by Malaysian public and 10 million shares reserved for the eligible directors, employees & person who contributed to the company. The remaining shares are for private placement.

The IPO exercise is expected to raise RM35 million and the proceeds will be used for purchase of new industrial land with building (13 million), new plant & warehouse (6 million), new machines (6 million), working capital (RM7.8 million) and payment of listing expenses (RM2.8 million).

Leon Fuat, which specialises in rolled long and flat products, focuses on carbon steel, of which the majority is mild steel, complemented by stainless steel and alloy steel. The company aims to strengthen its presence in Malaysia as well as gain a foothold in several countries. Currently, is has penetrated the Asean market with clients in Thailand, Singapore and Indonesia. For more information kindly browse Leon Fuat webpage.

Leon Fuat intends to pay up to 30 percent of profit after tax to the shareholders as dividend. This translate to dividend yield of 3.89 percent or 2.3 sen based on FYE 2012 data and IPO price of RM0.60.

The table below is the financial summary for Leon Fuat Bhd.

FYE 2009 FYE 2010 FYE 2011 FYE 2012
Revenue (RM’000) 355,424 474,917 542,943 437,203
Profit after Tax (RM’000) 17,037 20,594 25,155 24,109
Earnings per Share (sen)* 5.50 6.64 8.11 7.78
Price Earnings Ratio (x)* 10.92 9.03 7.39 7.71

* Based on number of shares post IPO

Alliance Investment Banks is the principal adviser, underwriter and placement agent of the IPO

For those who are interested in Leon Fuat IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 23rd May 2013 at 5pm. Tentative balloting date is on 28th May 2013 while the allotment date is on 4th June 2013.

Leon Fuat stock name in Bursa Malaysia is “LEONFB”.

View Leon Fuat prospectus in Bursa Malaysia webpage.

What do you think about Leon Fuat IPO? Are you going to subscribe?

7 comments… add one
  • What do you think about this IPO?

  • anyone gonna apply for this IPO? steel sector looks quite ok at the moment after the anti-dumping regulation news came out.

  • still consider. This stock will deep fried burn this time. Who now research report can post here. What your opinion about this ?

  • well managed company, but doesn’t mean price is fair. prepared to accept IPO price plunged to 40 sen. industry average is 50% off the NTA

    • highest 80 cents

  • All the best to all the subscribers! I will be missing this one out.. 🙂

  • can pick up now!7%below ipo price!


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