Tune Ins Holdings Bhd, an insurance products manager is scheduled to be listed in Main Market of Bursa Malaysia on 22nd February 2013.
The Initial Public Offering (IPO) consists of public issues of 143.37 million new ordinary shares and offer for sale of 66.85 million ordinary shares at an IPO price of RM1.55 per share at RM0.10 par value.
The institutional price will be determined by way of book building while for the retail application, RM1.55 is payable upon application. If the final retail price is lower, the difference will be refunded.
Out of this, 41.36 million shares allocated for application by Malaysian public, to eligible directors, employees and persons who have contributed to Tune Ins Holdings. The remaining shares are for institutional investors.
The IPO exercise is expected to raise RM222.2 million and the proceeds will be used for the repayment of bank borrowings (59.86 per cent), working capital (12.24 per cent), strategic investments (22.50 per cent) and payment of listing expenses.
Tune Ins Holdings is an insurance product manager for its on-line partners which are currently AirAsia, Tune Hotels and AirAsia Expedia. The company, among others, designs and manages insurance products that will be sold to customers of on-line insurance partners. For more information kindly browse Tune Ins webpage.
Tune Ins Holdings intends to pay 40 percent of profit after tax to the shareholders as dividend. This translate to dividend yield of 1.17 percent or 1.8 sen based on FYE 2011 data and IPO price of RM1.55.
The table below is the financial summary for Tune Ins Holdings Bhd.
| FYE 2009 | FYE 2010 | FYE 2011 | 9 months 2011 | 9 months 2012 | |
|---|---|---|---|---|---|
| Revenue (RM’000) | 30,049 | 43,523 | 55,870 | 40,149 | 136,155 |
| Profit after Tax (RM’000) | 17,213 | 26,402 | 34,175 | 25,175 | 26,294 |
| Earnings per Share (sen)* | 2.29 | 3.51 | 4.55 | 3.35 | 3.50 |
| Price Earnings Ratio (x)* | 67.69 | 44.13 | 34.10 | – | – |
* Based on number of shares post IPO
RHB Investment Banks is the principal adviser, managing underwriter and joint book runner of the IPO.
For those who are interested in Tune Ins Holdings IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 4th February 2013 at 5pm. Tentative balloting date is on 6th February 2013 while the allotment date is on 20th February 2013.
Tune Ins Holdings stock name in Bursa Malaysia is “TUNEINS”.
View Tune Ins Holdings prospectus in Bursa Malaysia webpage.
What do you think about Tune Ins Holdings IPO? Are you going to subscribe?
another overvalue counter.. @@
1) RM29.8m for goodwill as opposed to RM10m PPE? What goodwill does this new insurance company have?
2) “Risk: we depend on AirAsia” – High positive correlation with AirAsia is dangerous. airline business tends to be very volatile.
3) Competition – Can this company ever compete in general insurance market in the future? Or is the growth limited to certain niche (e.g. airline etc.)
Conclusion: Stay away until earnings become more visible.
1 million Blog, DO you in already ?
No, I’m not in. How about you.
Under current uncertain market conditions advisable to stay away. On listing day price will be below set IPO.
wont going to apply for that..look at the P/E..even more than Astro..
maybe another Astro in the making..
Am still stuck with Astro till today. Keeping it no choice!
hmm..good luck bro..now just can hope and wait for EPF to enter Astro, if not Astro hard to reach back rm3.
Price discounted to RM1.35…
Does not seem to be good. Remember what happen to UOADEV in 2010.