Technology Stock IPO, Century Software Holdings Bhd (CSHB)

Century Software Holdings Bhd (CSHB), a company specialized in financial management software solutions (FMSS), is schedule to be listed in Main Market on 31st January 2011. The company, was established on 8th August 2008.

CSHB’s IPO consists of a public issue of 23 million or new ordinary shares and an offer-for-sale of 10.9 million vendor shares at an IPO price of RM0.93 per share with RM0.10 par value.

Of the public issue of 23 million new shares, 8.55 million shares are for private placement to selected investors, 5.8 million shares for eligible directors, employees and business associates and 8.65 million shares for the public via balloting process.

The IPO will raise in RM21.4 million in proceeds. Of that, RM6mil of the IPO proceeds would be used for research and development (R&D). The rest are for capital expenditure to expand business, working capital, repayment of bank borrowings and listing expenses.

Currently, CSHB’s clients in malaysia comprised over 80 companies and government agencies at the federal, state and local government levels. CSHB aims to market its FMSS solutions to the public sectors in Brunei, Indonesia and Cambodia. They expects overseas business to contribute 10 per cent to revenue in three years from less than one per cent now.

For the time being, CSHB does not have fixed dividend policy. It is subjected to board discretion.

Profit after tax for financial end 2009, is RM9.3 million down from RM11.8 million in 2008 but up from RM6.5 million in 2007. In the same period, gross Earnings per Share is 5.4 sen , 6.9 sen and 3.8 sen respectively.

Price Earning Ratio (PE Ratio) for 2009 is 17.26 times at IPO offer price.

Kenagna Investment Bank Bhd is the adviser, sole underwriter and sole placement agent of the IPO.

For those who are interested in CSHB IPO you may subscribed at ATM machines or via Internet Banking. The subscription period is opened until 19th January 2011.

View Century Software Holdings Bhd prospectus in Bursa Malaysia webpage. Century Software Holdings Bhd stock name in Bursa Malaysia is “CENSOF”

What do you think about CSHB IPO? Are you going to subscribe?