UOA IPO - Updates on Final Price

Hi folks, sharing with you some updates we gather on UOA IPO...

Yesterday, UOA have officially set the IPO price at RM 2.60 for institutional & RM 2.52 for retail application. Although the price is about 9% lower than the earlier target, the IPO still raise about RM1.053 billion which makes them the largest IPO after Petronas Chemicals last year.

Refund of around RM0.38 per share is schedule to be refunded to the successful applicants within 10 days from the price setting which is on the 27-May-11.

Updated below the summary of the IPO. Refer to here on previous IPO summary.

Source: Bursa Malaysia

IPO - MSM Malaysia Holdings Bhd

Hi folks,

As I mentioned previously on my previous entry here, there will be few IPOs to be listed in Bursa Malaysia, and I already shared with you on UOA Development Bhd. So today, would like to share with you on MSM Malaysia Holdings Bhd.

I would say, MSM Malaysia Holding would be one of the sweetest IPO this year..hehe...why? because it is the sugar refining arm of Felda Group. :D. This IPO is poised to create a lot of excitement among the investors not only to the local but also the foreign.

The official prospectus is not out yet, but according to some of the sources that we gone through, stated that the IPO will be offering 234.56 million shares as details below :

                              i.            Institutional : 206.44 mil shares

                                                             ii.            Retails : 28.12 mil shares

 
Looking at the above, obviously retail investors would be disappointed with just less than 12% of the offered shares allocated to the retailers.

Indicative price for this IPO is ranging from RM 3.50 - RM 3.80 depending on the institutional price to be determine in the later date. The proposed IPO is expected to generate between RM 800 million – RM 900 million cash.

At this point of time you may refer to the following summary of MSM Malaysia Holdings Berhad ..will be updated once we got new findings..

*Source: Bstar, Thestar online

XOX IPO Related Post

Hi folks,

Below is related post from the star online, posted yesterday on XOX, which they expect to return their profit this year..hmm..personally, it is really a big target to achieve as compared to previous year performance..well, nothing is impossible if they do the right thing..

So below for your perusal..happy reading!

KUALA LUMPUR: ACE Market-bound XOX Bhd expects to return to profitability this financial year ending Dec 31, 2011 (FY11) and grow its revenue more than 10 times on an increase in subscribers, higher average revenue per user (ARPU) and the launch of more services.

According to its prospectus, XOX, a full-fledged mobile virtual network operator (MVNO), expects a net profit of RM19.7mil for the current FY11 against a net loss of RM15.9mil posted a year ago. It also anticipates revenue to surge more than 10 times to RM249.5mil from RM20.1mil achieved in FY10.

“The industry is huge and it is still growing. We need to get the subscribers and will be launching more services going forward. Without the revenue, you can't get the net profit,” chief executive officer Ng Kok Heng said after launching its prospectus yesterday.

XOX, which is slated for a listing on June 10, currently has more than 400,000 subscribers and targets to hit one million subscribers this year.

The telco forecast that there would be 1.77 million starter packs sold to distributors at an average selling price of RM8.81 per starter pack for the current year.

“In the past three years, we have garnered a significant 20% market share in the MVNO space in the country and built a reputation for introducing innovative and customer-centric services with unbeatable value,” Ng said.

He said as an MVNO, XOX did not have to invest heavily in infrastructure. XOX currently rides on Celcom Axiata Bhd's network infrastructure.

On ARPU, Ng said XOX's average ARPU was about RM20 per month, comprising mostly pre-paid customers. However, he said with more services such e-wallet, an electronic payment service to be launched this year, its ARPU was set to increase. XOX expects the new services as well as wider availability of its products nationwide to help draw more subscribers to its stable.

“We believe that it (e-wallet) will be a lifestyle enhancer for our consumers by bringing additional convenience in making payments and various deals,” he said.

XOX's IPO entails the public issue of 46.8 million new ordinary shares at an initial public offering (IPO) price of 80 sen each, raising RM37.4mil in proceeds for the group. Of the 46.8 million public issue shares, 29.8 million shares will be allocated for private placement for eligible identified investors, 9.5 million shares to be allocated to eligible directors, employees and business associates of XOX and 7.5 million for the public.

Asked if the IPO shares of 10 sen par value to be issued at 80 sen were expensive, Ng said it was “relative”.

XOX plans to allocate RM23.2mil from the proceeds of its IPO for working capital, RM6.2mil for capital expenditure, RM5mil for payment to creditors and the balance RM3mil for listing expenses.

XOX - The Latest IPO

Hi folks..it's been a while huh since the last entry..

Ok, straight to the point, for your info, the latest IPO annnouced yesterday is XOX. It is a Mobile Virtual Network Operator (MVNO)which is partnering with Celcom Axiata where XOX utilizes Celcom's nationwide mobile network infrastructures.

We are not going to discuss this XOX IPO in detail as we (as of me and my housemate) are not really interested with this IPO. Why meh? Because..the financial situation does not look convincing as they are still in "Red"

Suffice to share with you the company summary for your reference:

New Bank BLR Rate

Hi all, as mentioned in previous entry, BLR has increased by 0.3% just recently right? Let me share with you some history on increase of this BLR as below:

Quite frequent isn't it for 2010? Would history repeat itself again this coming July?

 Now, am sharing with you the latest bank BLR Rates for your reference:

 *Source: horlic

Malaysian IPO

Hi all,


Today I wish to share with you a bit on Malaysian IPO..Wanna know? Let me ask you this..

Do you know that 12 IPOs which were out early this year has successfully debut higher than their offered price?

Yes..indeed they are..making Malaysian IPO once again turns out to be very2 eye-catching..In addition to that, half of the shares are currently trading at 40% higher than the initial price. The latest IPO Company named Boilermech, listed almost 3 times the offered price!

So, how do you see 2^ndhalf 2011 would be?

Yup, you are right, we would see few 'big' company to be listed in Bursa Malaysia starting with UOA Development. Others such as Bumi Armada, MSM Holding, Pavilion, Gas Malaysia, AirAsiaX are waiting for their turn and should attract local and foreign investors.

Let us go through details of the UOA Development this time around..shall we?

1. UOA Development Bhd

UOA Development is a property development, construction and property investment company. Current development is in Bangsar South Cityone of MSC-status centre in KL. It is one of the leading property developer in KL.

UOA currently have a total of saleable and lettable are of approximately 329,733 sq m of properties with estimated GDV of RM 2.07Billion to be completed over the next 3 years.

Prospectus for UOA Development officially published and open for investor view on 18-May-2011. In total, the IPO offers 407mil shares as below :

                                                               i.      Institutional : 337 mil shares

                                                             ii.      Retails : 70 mil shares

       -  10 mil shares – eligible directors & employees

       -    30 mil shares – Bumiputera

       -     30 mil shares – Public

Final price will be determined on 26-May-2011, after closing for Institutional Offering, and will be the lower of :

                                                               i.      The retail price (RM2.90)

                                                             ii.      97% of the institutional price

IPO/Company Summary

*Sources : Thestar online, UOA Group, Malaysia Property News

Financial Year Summary

BLR Increased by 0.3%

I shared with you in previous post here that BLR (Base Lending Rate) is expected to be increased right? Well, it already has actually..from 6.3% to 6.6%, an increase of 0.3% that is..

Have you ever wonder why banks increase the BLR and BFR (Base Financing Rates)? I did..and as usual my other half explained it to me..let me share with you what I figured out..

To start with, rise in BLR and BFR is in response to increase in Overnight Policy Rate (OPR) by Bank Negara Malaysia (BNM). Increase in OPR is normally on 25 basis points, and this time it increase from 2.75 to 3.00 on last 5 May 2011.

Why BNM increase the OPR? BNM cannot simply raise the OPR just like that, without taking into consideration few factors. Among other reasons is ue to forecast of better economy growth despite Tsunami in Japan and continued economic slowdown in US and Europe.

So, what is the consequence of increase in OPR? Obviously, the increase in OPR contributes to increase in inflation rate. Inflation is already expected to increase further due to higher food prices & fuel cost. You guys are aware right that sugar price increased just recently, not to mention the fuel price increased few times already for this year alone..According to most analysts, there might be another round of OPR increase expected in the second half of the year.


As a result, banks start to increase the BLR & BFR a week after. The increase is 0.05% higher than the OPR which would be positive to the Banks earnings.

How does the increase in BLR have any impact on us? How much? Let’s do some calculation..:D

Sample on the impact

Let me take the same example as before..say your housing loan is RM 400,000..

1. Current Interest rate : BLR – 2.3 = 6.3 – 2.3 = 4.0%

2. New Interest rate : BLR – 2.3 = 6.6 – 2.3 = 4.3%

From the table above, you can see an increase around RM 70 per month which would result in RM 840 per year & RM 25,200 for 30 years.

Perhaps we can say that the impact would be minimal?



IPO vs Savings

Hi folks, have you ever ask yourself, is there anything else that you could do instead of letting all your money grow in your saving accounts?

Do you know that you could gain more from your savings instead of leaving them all in your account?

One of the options that you may want to consider is investing the money in Bursa Malaysia. In general, investing in Bursa can be categorized as below:

1. Buying IPO ( Initial Public Offering )
1. IPO refers to new company that is to be listed in Bursa Malaysia
2. Buying IPO is proven to be a safer way to invest as compared to buying shares direct from the Board
3. Application is simple. You may apply either through ATM/Online Banking/Send application form to Securities Commission
4. After that, it will go through balloting process, and you will be informed if your application is successful. If it is not, no worries, you will get your money back. Believe me, we experience that before..
   
2. Buying stocks directly from Board

          There are 2 ways you could buy stocks directly from the Board:

1. Online stocks     –  Buying stocks online either via M2U, CIMBClicks etc means you got to enjoy lower brokerage fees but it may be a bit hassle to those who are mobile since it requires internet connection for buy/sell activities.
2. Remiser               –  Buying stocks through remiser means you got to pay higher brokerage fees but then it provides mobility since the communication medium is via phone

Let’s now do some investment study. Say you have 100K in saving account; you could actually let half of the money remain as the savings while another half invest into IPO.

Now, lets calculate

• 50% of RM100,000 = RM 50,000 – remain in the saving

o   Average interest for saving in Malaysian Bank should be around 5%-7%

o   In a year, we can have the interest of RM 50,000 x 6% (just take the average)

=RM 3,000

•  50% of RM100,000 = RM 50,000 – apply for IPO . Let us take one of previous IPO example so you could see the results clearly, PCHEM in year 2010.

o   PCHEM IPO prices was fixed at RM5.04 per unit

o   With RM 50,000, you can apply for approximately 9,920 units. Note that the application closing date was Nov-2010

o   Let say after going through balloting period, you have successfully obtained  5,000 units

o   PCHEM was then listed at RM5.71 on 26-Nov-10

o   It hit the peak of RM7.61 on 7-Apr-11

o   Now, its current price is RM 7.00 on 13-May-11

o   You see, you are gaining around RM 1.97 per unit with the current stock price

o   Simple calculation shows the gain are RM 1.97 x 5000 units

= RM 9,850

So, in just 6 months, you could gain easily RM 9,850 compare to RM 3,000 in 1 year from  your saving account.

Please bear in mind ya..not all stocks provide us this kind of return. Therefore, you need to pick the ‘good’ stocks based on their sectors, prices offered & company fundamental.

Am sharing with you below summary of IPO listed year 2011 that you want to consider from now on :D

*Last price quotes on 13 May 2011.
** Source Bursamalaysia & TheStaronline

Case Example of Home Loan Refinancing

Hi folks..sorry for taking quite some time to continue my previous entry..well things came out that I got to postpone my intention to continue writing.

So lets go straight to the point..last time I promised to share with you case example of each reasons for refinancing right? Here we go..

 

Lets make a reference on the following:

     Your current housing loan is fixed at RM 400,000

             Loan tenure of 30 years
            Your current loan interest rate is BLR + 0.5 = 6.3 + 0.5 = 6.8%
            Your refinance interest rate is BLR – 2.3 = 6.3 – 2.3 = 4%

Case example 1: Maintain monthly payment will result in reduce of loan tenure

 

With the lower interest rate, you can actually reduce loan tenure from 30 years to only 18 years by maintaining the same monthly payment to the bank.  Let’s see the calculation I made below: 

Now what does it mean? It means,  saving of 12 years loan tenure by maintaining the same monthly payment easily can save RM 2,600 x 12 months x 12 years = RM 374,400!

 

Case example 2: Maintain loan tenure will result in lower monthly payment

With the lower interest rate, you can actually reduce your monthly payment from RM 2,600 to RM 1,900 by having the same period on loan tenure. Let’s see the calculation I made below:

Now, what does it mean? It means that..you are saving RM700 monthly, and that my friend also means that you can afford to purchase another medium cost apartment for rental purposes which turn to be an additional income for you!

 

Case example 3: Maintain monthly payment & loan tenure will result in excess cash

With the lower interest rate, you can have up to RM146, 000 excess in cash by refinancing with the same monthly payment & loan tenure. Let’s see the calculation I made below:

Now, do I need to elaborate in details on the usage of the money? ;).

So folks, in any scenario, refinancing is the best option that we have. What are you waiting for?

3 Main Reasons for Home Loan Refinancing

Previously, I wondered why people do refinancing of their home. Doesn’t it mean they are actually delaying the tenure of your debt? Or in other words you are raising your owing money from the bankers? Yup, was that short minded and totally discourage to proceed with refinancing with this belief, but that change after my other half explain to me what that means..

I understand that...

Refinancing of your current housing loans means you are taking advantage on the current lower finance charges compared to the one you are having.

Looking back at the history, over the last 5 years, average loan interest was BLR + 0.5%. Currently, most of the Malaysian Bank is offering as low as BLR/BFR – 2.3%. Current BLR stood at 6.3% and mind you it is predicted to be revised upwards very soon. I guess before it does happen, grab the opportunity of the current low interest rates for the following reasons:

1.       To maintain monthly payment  that will results in reduced of loan tenure

2.       To maintain loan tenure that will result in lower monthly payment

3.       To maintain monthly payment and loan tenure that will result in excess cash

Still don’t see how the above is at your preferences? I’ll share with you case example  of each so you could see the differences before and after the refinancing..

First Entry

With the name of God, most Gracious and Most Merciful. Thank you for giving me the inspiration to write especially on this financial matters, which I have never dream of before. Been putting serious thoughts on what would be the best topic for me to write that would be beneficial for all of you. After a few considerations, and with the support of my other half, I have decided to write on financial stuff in relation to loan, mortgage and property. All will be based on self experience and analysis, thus there’s no right or wrong answers here. I will try as best as I could to use as lay man term as possible for ease of your understanding. I know it is really not easy to understand those sophisticated financial terms used if you go through financial institution websites.. 

Please feel free to put down your comments, and correct me if there’s any misleading information or data. I will take them as positive feedback, and together we could learn to improve our self. For a start I will share with you why we should do housing loan refinancing. Wait for my next entry!