Pestech International Bhd, integrated power technology company is scheduled to be listed in Main Market of Bursa Malaysia on 30th May 2012.
The Initial Public Offering (IPO) consists of public issues of 12.88 million new ordinary shares and 8.59 million shares for sale at an IPO price of RM1.00 per share at RM0.50 par value.
Out of 12.88 million new ordinary shares, 1.5 million shares are for private placement to selected investors, 6.0 million shares for application by Malaysian public and the remaining 5.4 million shares are made available to directors, employees and business associates of Pestech International Berhad.
For the offer for sale 8.59 million existing shares, 6.46 million shares allocated by way of placement to Bumiputera investors, and 2.13 million shares via placement to identified investors.
The IPO would raise RM12.88 million in proceed. The company intends to invest a total of RM1.8mil for business expansion and RM6mil to pay off its existing debts from project financing.
Pestech designs and installs high voltage and extra high voltage sub-stations, transmission line and underground cable systems. It also manufactures propriety power systems components and equipment.
Foreign revenue contributed 76.6% of the total revenue in 2011 which come from Cambodia, Sri Lanka, Papua New Guinea, Ghana, Tanzania and Brunei. It is looking to venture into the Laos, Myanmar and Vietnam market.
On the local market, 90% of our local revenue are recurring mostly from TNB which make up about 16%. Pestech has an existing order book of RM185 million, which will last it up to 2014.
More information regarding the company can be found in Pestech International webpage.
For the time being, Pestech International does not have any fixed dividend policy.
The table below is the financial summary for Pestech International Bhd.
|FYE 2007||FYE 2008||FYE 2009||FYE 2010||FYE 2011|
|Profit after Tax (RM’000)||2,360||3,263||3,582||11,492||12,001|
|Earnings per Share (sen)*||2.75||3.80||4.17||13.38||13.97|
|Price Earnings Ratio (x)*||36.39||26.32||23.98||7.47||7.16|
* Based on number of shares post IPO
Bank Islam is the principal adviser and managing underwriter of the IPO.
For those who are interested in Pestech International IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 18th May 2012 at 5pm. Tentative balloting date is on 22nd May while the allotment date is on 28th May 2012.
Pestech International stock name in Bursa Malaysia is “PESTECH”.
View Pestech International prospectus in Bursa Malaysia webpage.
What do you think about Pestech International IPO? Are you going to subscribe?