Westport Holdings Berhad IPO

Westport HoldingsWestport Holdings Bhd, the operator of the country’s busiest port, is scheduled to be listed in Main Market of Bursa Malaysia on 18th October 2013.

The Initial Public Offering (IPO) consists of 813.19 million shares. 710.89 million are set aside for cornerstone/institutional investors and 102.3 million for Malaysian Public,employees and people who have contributed to the Westport group.

The retail price of the offering is RM2.50 per share at RM0.10 par value. The final retail price will be determine through book building exercise. If the final retail price is less than the retail price, there will be a refund to the retail investors.

The IPO will raise about RM2 billion in proceeds. However, the IPO does not include any fund raising for the company, Westports had said the listing was mainly to enhance its profile to market its services and establish liquidity for its shares.

Westports manages Malaysia’s main export gateway of Port Klang, said to be the world’s 12th busiest port. The cargo services firm had a 70% market share in container volume throughput as at 2012. The group plans to capitalise on continued growth in container traffic to strengthen its position as a preferred Malaysian gateway.

State-linked funds will take up about 90% of its institutional tranche and 45% of it are from eight cornerstones investors. This can shield the IPO from the current jittery regional markets. Among the cornerstone, investors are Employees Provident Fund, a state-owned fund management firm, civil servants’ pension fund and a pilgrim fund.
Among other names who have surfaced are Hwang Investment Management, Bermuda-based Utilico Investments and UK-based Genesis Investment Management.

More information regarding the company can be found in Westport Holdings webpage.

Westport Holdings intends to pay not less than 75 percent of its profit after tax as dividend. Base on 2012 figures, this translate to 3.2 percent dividend yield or 7.9 sen per share.

The table below is the financial summary for Westport Holdings Bhd.

FYE 2010 FYE 2011 FYE 2012 6 mth ended 30th Jun 2012  6 mth ended 30th Jun 2013
Revenue (RM’000)  998,548  1,387,374  1,492,262  629,775  750,084
Profit after Tax (RM’000)  284,856  316,473  360,960  160,270  198,396
Earnings per Share (sen)*  8.35  9.28  10.59  9.40**  11.64**
Price Earnings Ratio (x)*  29.93  26.94  23.62  26.60**  21.48**

* Based on number of shares post IPO
** Annualized

Maybank Investment Bank is the principal adviser, managing underwriter for the Malaysia public offering of the IPO.

For those who are interested in Westport Holdings IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 27th September 2013 at 5pm. Tentative balloting date is on 2nd October while the allotment date is on 16th October 2013.

Westport Holdings stock name in Bursa Malaysia is “WPRTS”.

View Westport Holdings prospectus in Bursa Malaysia webpage.

What do you think about Westport Holdings IPO? Are you going to subscribe?

18 comments… add one
  • Latest news:

    The institutional offer of Malaysia’s Westports Holdings Bhd’s $688 million initial share sale has been oversubscribed more than 10 times.

    The bookbuild institutional tranche, which makes up 14 percent of the offering, has been mostly subscribed at the higher end of the bookbuilding range between 2.30 and 2.50 ringgit per share the first day it was launched.

  • Dear 1-million-dollar,

    Do you recommend buying this IPO, knowing current market situation?

    • Hi Brian,

      I think Westport IPO is OK because there are many State-linked funds interested in it. The institutional portion was oversubscribed more than 10 times. I read somewhere that they can’t sell their portion for 6 months. Furthermore the finance report seem to be good, Their profit up every year.

      Are you going to subscribe? 🙂

  • 1mdb – are you going to subscribe? pls share your opinion

  • yes :). Now preparing my bullet. How about you?

  • This time need based on luck in order to get it…. have to push up the bullet up to 100K and above…. otherwise no hope at all…

  • 1mdb,

    yup looks very tempting but with limited bullet must consider another golden ipo also UMW O&G.
    The timing so tight for hit & run strategy.

    • I subcribed westport already. Good luck!!ya,timing so tight for hit n run. Hopefully,umw og launching November

      • Congrate Angel, are you invest for long term or hit & run like toke balok’s intention. At what exit price do you think it will be .

  • UMW O&G opening early Oct 2013, closing end of 2nd week / early 3rd week Oct 2013.

  • Target Price / Fair Value for Westport

    Alliance Research – RM2.84
    HwangDBS – RM2.75
    JF Apex Securities – RM2.97
    JP Morgan – 3.13
    Hong Leong – 2.75
    Kenanga – 2.90

  • I just applied the IPO :). Good luck for those who applied.

  • handam dia kuat kuat !!!!!!!!!!!!!!!!! All the best for you all !!!!!!

  • how 1mdb, manage to get some? if yes let’s wait till 18th for showdown…

    • Yes :). I manage to get it. How about you?

      • yup 20 big ..now umw og…are you going for it?


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