MSM Malaysia Holdings Berhad IPO


MSM Malaysia Holdings Bhd, a leading sugar manufacturer in Malaysia, is schedule to be listed in Main Market on 28th June 2011.

The Initial Public Offering (IPO) consists of 234.6 million ordinary shares at an IPO price of RM3.38 per share at RM0.50 par value. However, the final retail price will be equal to the 97% of the institutional price.

Out of 234.6 million shares, 206.4 million shares are offered to Malaysian and foreign institutional and selected investors and a retail offering of 28.1 million shares to the Malaysian public and employees of MSM Malaysia Holdings Berhad.

MSM Malaysia Holdings Berhad is a unit of Felda Groups and it is Malaysia’s dominant sugar producer controlling 70 per cent of the domestic market.

More information regarding the company can be found in MSM Malaysia Holdings webpage.

MSM Malaysia Holdings intends to pay 50 percent of profit after tax as dividend but it is subjected to board and shareholders approval. At an IPO price of RM3.38, the dividend yield is 4.90 percent or 16.56 sen based on 2010 figures.

The table below is financial summary for MSM Malaysia Holdings Bhd.

FYE 2008 FYE 2009 FYE 2010
Revenue (RM’000) 1,514,230 1,643,621 2,168,598
Profit after Tax (RM’000) 122,210 237,293 232,866
Earnings per Share (sen) 17.4 33.8 33.1
Price Earnings Ratio (x) 19.44 10.01 10.20

CIMB Investment Bank Bhd is the Principal Adviser and Sole Global Co-Ordinator while Maybank Investment Bank, AmInvestment Bank, HwangDBS Investment Bank, MIDF Amanah Investment Bank, OSK Investment Bank, RHB Investment Bank are Joint Bookrunners for the Institutional Offering and Joint Managing Underwriters for the Retail Offering.

For those who are interested in MSM Malaysia Holdings IPO, you may subscribed at ATM machines or via Internet Banking. The subscription period is opened until 13th June 2011 at 5pm for retail offering and 14th June for institutional offering. Tentative balloting date is on 15th June while allotment date is on 24th June 2011.

View MSM Malaysia Holdings prospectus in Bursa Malaysia webpage.

What do you think about MSM Malaysia Holdings IPO? Are you going to subscribe?

22 comments… add one
  • Yeah, i will go for it. What about u?

  • I’m too. This one can not miss out.

  • How to subscribe ?

  • Dean,

    The easiest method is via Internet Banking.

  • Anyone know what is the fair value for this stock?

  • When you say internet banking, it means CIMB Cliks or Maybank 2 U right ?

  • Reply
  • Not subscribing… Not confidence with GLCs.

  • yup..dont miss the golden opportunities to invest!

  • but there is 1 thing , have to bear in mind, only 7m++ shares are available to public, which mean that the chances for you to get this ipo are very slim.

  • hi,i interested to subscribe but dun have much capital,should i put all my capital into it or just look for other investment?

  • Yeah cant miss this one. Will try this IPO but if fail will buy on the first day its floating.

  • What is the fair value price?

  • Good Luck to all who apply!. I will post target price / fair value when the information become available.

  • UOA disappointment man… Apply apply get already also like that.. Lemah man.. =.=!

  • Bro kampunginvestor,

    Yes, I also disappoint. Anyway I dispose mine at RM2.60 during opening. Do you still holding?

  • Yes still holding it.. Dang it… =.=!!! Furious here…!!

  • I bought it at 2.48 (UOA) and intends to keep it. Any advice?

  • I think, if you intend to keep for long term it should be OK.

  • it is syariah compliant? which section to see in prospectus?

  • afiza, I’m not sure as I don’t read the full prospectus.

    Updates of Fair Value & Target Price for MSM,

    Alliance – RM4.30
    JF Apex – RM4.22
    Kenanga – RM3.61
    TA – RM4.30

    Seem good to apply.

  • Apparently they have cashed my bank draft. From your table, I’ll be getting 2000 shares. How do I get back my balance money?


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