MSM closes up RM1.51 on first trading day
gula ni brg consumer yg slalu pkai, ada brand, monopoli..bole jual anytime je..tapi saya suka prospek dividen utk jangka panjang..
MSM closes up RM1.51 on first trading day
Posted on 28 June 2011 - 03:32pm
Last updated on 28 June 2011 - 06:57pm
KUALA LUMPUR (June 28, 2011): MSM Malaysia Holdings Bhd made a sweet debut on Bursa Malaysia today, with a huge premium that put a big smile on the face of everyone lucky enough to be balloted for its initial public offering (IPO).
But it also begged the
question whether the share sale was priced too low to guarantee success, and did parent company Felda Global Group — the commercial arm of the Federal Land Development Authority (Felda) — miss out on a great opportunity to squeeze more money from investors from the first-ever listing involving the group's companies.
Chairman Tan Sri Mohd Isa Abdul Samad said
more Felda-controlled businesses are being prepared for listing, but he did not identify the candidates.
"Felda Global will list more of its businesses when it is strategic for the group to do so," he told reporters at MSM's listing ceremony.
Shares in MSM ended the first trading day at RM4.89, or 39% higher than its offer price of RM3.50 sold to institutional investors.
Retail investors saw a RM1.51 premium as they paid RM3.38 a share.
The stock had opened at RM4.45.
RHB Research Institute in a recent note to clients reckoned MSM should be worth RM4.90 a share, valuing the stock at 11 times its projected earnings of 44.3 sen a share for the year ending Dec 31, 2012 (FY12).
Meanwhile, MIDF Research valued the stock at RM4.20, or 10 times its estimated earnings of 42 sen a share for FY12.
"Earnings growth in the sugar refining industry is likely to be sedate and nothing to be excited about,'' it said.
The IPO had raised RM422 million for MSM, and the company is expected to spend between RM80 million and RM90 million annually over the next two years on capital expenditure.
MSM has set a dividend payout policy of 50% of its annual profit.
Based on analysts' projections, this works out to an annual payment of between 20 and 25 sen a share over the next three years.
MSM produced 945,000 tonnes of refined sugar, or 57% of total sugar production in Malaysia, through two units — Malayan Sugar Manufacturing Co Bhd and Kilang Gula Felda Perlis Sdn Bhd.
The group's combined annual refining capacity is 1.1 million tonnes.