Smartag Solutions Berhad IPO


Smartag Solutions Bhd, a provider of total Radio-frequency identification (RFID)-based solutions, is schedule to be listed in ACE Market on 18th April 2011.

Smartag Solutions’s IPO consists of public issue of 57 million new ordinary shares at an IPO price of RM0.31 per share with RM0.10 par value.

50 million shares are to be issued to identified investor, 2 million shares will be allocated for the Malaysian public and 5 million shares for eligible employees and person who contributed to the company.

The IPO will raise RM17.67 million in proceeds. RM8.84 million would be channeled to project-related capital expenditure, RM3.36 million for research and development, RM3.53 million for working capital and RM1.94 million for listing expenses.

Smartag Solutions plans to implement land checkpoint project in Thailand next month. More information regarding the company can be found in Smartag Solutions webpage.

For the time being, Smartag Solutions have no fixed dividend policy.

The table below are financial summary for Smartag Solutions Bhd.

FYE 2008 FYE 2009 FYE 2010
Revenue (RM’000) 23,915 34,558 11,013
Profit after Tax (RM’000) 8,425 6,449 11,013
Earnings per Share (sen) 4.96 3.82 6.09
Price Earnings Ratio (x) 6.26 8.17 5.09

Kenanga Investment Bank Bhd is the adviser, sponsor, underwriter and placement agent for the IPO.

For those who are interested in Smartag Solutions IPO you may subscribed at ATM machines or via Internet Banking. The subscription period is opened until 4th April 2011 at 5pm. Tentative balloting date is on 6th April while allotment date is on 12th April 2011.

View Smartag Solutions Bhd prospectus in Bursa Malaysia webpage. Smartag Solutions Bhd stock name in Bursa Malaysia is “SMARTAG”.

What do you think about Smartag Solutions IPO? Are you going to subscribe? The public portion of the IPO seem to be too small.

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