iDimension Consolidated Berhad, a provider of manufacturing software solutions is scheduled to be listed in ACE Market on 11th November 2011.
The IPO consists of public issue of 38.2 million ordinary shares at an IPO price of RM0.38 per share with RM0.10 par value. Out of this, 5 million shares are allocated to Malaysian public, 28 millions for private placement to identified investors and 5.32 millions are for employees and business associates.
While the destruction arising from the floods is undoubtedly major, it may indirectly benefit some Malaysian companies. Companies involved in tourism and healthcare in Malaysia may benefit from traffic diverted from Thailand, a trend that may continue even after the flood waters recede. Consumer companies may get a short term lift from increased exports to Thailand.
On the other hand, automotive and technology companies are the biggest losers.
Below are the target prices/fair value and ratings for stocks to benefit.
OSK, maintains their UNDERWEIGHT call on the Technology sector as we expect sub par growth in the seasonally sturdy 3Q of the year. Although valuations have retraced to as low as below net book value for some, we believe it is still premature to attempt bottom-fishing with firm recovery unlikely until 2012 given the current global macro outlook.
Despite the recent sharp spike in USD against RM which could help to lift earnings given the export nature of local technology manufacturers, OSK upholds their negative view on the sector due to the weakness in end-consumer demand for HDDs amidst rising demand for solid-state drives and the impact from floods in Thailand where these companies presences.
Below are the target prices/fair value and ratings for selected technology stocks.
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.
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.