JCY looks likely to slash its IPO price to RM1.60 from an earlier indicative RM2.00. At RM1.60, its a good price level to get in. I still think its fair value is at RM1.80. Enough said.
------------- StarBiz: Malaysian disk-drive component maker JCY International is to slash the size of its initial public offering after pricing it at the lower end of an indicated range, according to people with knowledge of the matter. The cut comes after the company priced the institutional tranche of the offering at RM1.60 a share in a bookbuilding.
Based on the offer price, the IPO values the company at nine times 2010 earnings and is within the 8-10 times valuation of local and listed competitors in Singapore and Taiwan.
“Books are covered slightly over one time at the low end of the range at RM1.60,” said one source.
Sources, who could not be named because they were not authorised to speak to the media, said the company plans to cut the offer size because the strike price had fallen short of expectations. “The allocation for institutional portion will be slashed to about 300 million shares from 470 million. The offer for sale is now less than the original size of 530 million shares,” said one source familiar with the deal terms.
A second source confirmed the cutting of the offer size, saying that the new offer size would now be 470 million shares, including both the institutional as well as the retail tranche. In its prospectus issued earlier this month, JCY said it would sell 470 million shares to institutional investors and 59.9 million shares to retail investors who would buy the shares at a 5% discount to the institutional price.
At RM1.60 and selling just 470 million shares, JCY will raise only RM750mil, compared to its target of raising up to RM1.2bil to make the sale the largest tech IPO in South-East Asia since 2000. Proceeds from JCY’s offer will go directly to its selling shareholder YKY Investments Ltd, whose sole director is 54-year-old Yong Yoon Kiong, founder of JCY.
UBS and CIMB are joint managing underwriters and bookrunners for the IPO.
“Undoubtedly, JCY is a great company operating in a steady growing industry (but) in terms of valuation of the IPO, we do not think there is much premium left for potential subscribers in the near term,” said OSK Investment Bank in an IPO note.
JCY made a net profit of RM207.3mil in fiscal 2009, and is forecasting 73% more profit in the current financial year.
p/s photo: Rannes Man Posted by Salvatore_Dali at 1:41 PM Labels: JCY, Rannes Man
This type of blogs is very recreational, call attention because of them you always learn something useful and not as in other blogs that are a waste of time and learn nothing.Congratulations for this blog and hopefully they are more like this, I regret to say that I've only found the Generic Viagra and this with the material of common interest!
Halo loser mike, see how good is yr sifu dali's picks , jgn marah yah ? >
ReplyDeleteDear dali,
May I know what happened to yr calls? JCY @1.80 EAH @ 0.70 & Heaveboard @0.76 ? should we cut loss or do averaging ? please advice.
http://malaysiafinance.blogspot.com/2010/07/road-ahead-for-eah.html
http://malaysiafinance.blogspot.com/2010/02/jcys-new-pricing.html
http://malaysiafinance.blogspot.com/2010/08/why-i-like-hevea-fiberboard.html
Thursday, February 11, 2010
JCY's New Pricing
JCY looks likely to slash its IPO price to RM1.60 from an earlier indicative RM2.00. At RM1.60, its a good price level to get in. I still think its fair value is at RM1.80. Enough said.
-------------
StarBiz: Malaysian disk-drive component maker JCY International is to slash the size of its initial public offering after pricing it at the lower end of an indicated range, according to people with knowledge of the matter. The cut comes after the company priced the institutional tranche of the offering at RM1.60 a share in a bookbuilding.
Based on the offer price, the IPO values the company at nine times 2010 earnings and is within the 8-10 times valuation of local and listed competitors in Singapore and Taiwan.
“Books are covered slightly over one time at the low end of the range at RM1.60,” said one source.
Sources, who could not be named because they were not authorised to speak to the media, said the company plans to cut the offer size because the strike price had fallen short of expectations.
“The allocation for institutional portion will be slashed to about 300 million shares from 470 million. The offer for sale is now less than the original size of 530 million shares,” said one source familiar with the deal terms.
A second source confirmed the cutting of the offer size, saying that the new offer size would now be 470 million shares, including both the institutional as well as the retail tranche. In its prospectus issued earlier this month, JCY said it would sell 470 million shares to institutional investors and 59.9 million shares to retail investors who would buy the shares at a 5% discount to the institutional price.
At RM1.60 and selling just 470 million shares, JCY will raise only RM750mil, compared to its target of raising up to RM1.2bil to make the sale the largest tech IPO in South-East Asia since 2000. Proceeds from JCY’s offer will go directly to its selling shareholder YKY Investments Ltd, whose sole director is 54-year-old Yong Yoon Kiong, founder of JCY.
UBS and CIMB are joint managing underwriters and bookrunners for the IPO.
“Undoubtedly, JCY is a great company operating in a steady growing industry (but) in terms of valuation of the IPO, we do not think there is much premium left for potential subscribers in the near term,” said OSK Investment Bank in an IPO note.
JCY made a net profit of RM207.3mil in fiscal 2009, and is forecasting 73% more profit in the current financial year.
p/s photo: Rannes Man
Posted by Salvatore_Dali at 1:41 PM
Labels: JCY, Rannes Man
tt, tiger can buy?
ReplyDeleteThis type of blogs is very recreational, call attention because of them you always learn something useful and not as in other blogs that are a waste of time and learn nothing.Congratulations for this blog and hopefully they are more like this, I regret to say that I've only found the Generic Viagra and this with the material of common interest!
ReplyDelete