Prestariang, Potential >10% Dividend Yield for the Next 2 Years

Prestariang Berhad

Prestariang Berhad (PRESBHD, 5204) was incorporated in 2003 as an Information and Communication Technology Services company, focussing on professional training and certification.

Currently, it offers 40 certification courses from various technology and software vendors and organizations, including Microsoft, IBM, Oracle, CompTIA, Autodesk, EC-Council, Adobe and others.

Prestariang was listed on Bursa Malaysia’s Main Market on 27th July 2011 win an IPO price of 90 sen. Unfortunately, due to listing timing, the share price performed badly since the listing day. The price drop to lowest of 47.5 sen on 19th September. It was close at 55.5 sen on 5th October.

The management has set a dividend policy of up to 50% for the next 3 years. Based on forecast earnings by OSK Research, it translates into a lucrative dividend yield of >10% for both FY11 and FY12 given the recent weakness in the share price. OSK Research also estimates, the target price or fair value of Prestariang at 92 sen representing 66.8% up site potential from 5th October closing price.

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Prestariang IPO Oversubscribed by 7.10 times

Prestariang Berhad

Prestariang Berhad Initial Public Offering (IPO) received an overwhelming response with its public portion of 30 million shares. It was oversubscribed by 7.10 times. The IPO attract 13,355 applications or 243.1 million shares.

In addition, 40 million shares made available for private placement to identified investors have been placed out.

The IPO allocate 30 million shares for public. Of these, 15 million shares were allocated for Bumiputera category while 15 million shares were allocated for Malaysian Public category.

Below are the allotment summary for public portion.

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Prestariang Berhad IPO

Prestariang Berhad

Prestariang Bhd, an information and communications technology (ICT) training and certification provider is schedule to be listed in Main Market on 27th July 2011.

The IPO consists of public issue of 99 million ordinary shares at an IPO price of RM0.90 per share with RM0.10 par value.

Out of this, 8 million shares are allocated to Malaysian public. The rest are allocated to identified investors and eligible directors, employess and person who contributed to Prestariang Berhad.

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