Malaysian Marine & Heavy Engineering Holdings Bhd’s (MMHE) initial public offering (IPO) could potentially raise between RM854.4mil and RM1.12bil, priced is RM3.61 per share.
Its performance driven by 3 core business
(1)engineering and construction services
(2)marine converting
(3) marin repair.
MMHE runs a yard in Pasir Gudang, Johor, one of the largest in the region and the only capable of coverting big ships into vessel that can process and store oil and gas structure.
MMHE runs a yard in Pasir Gudang, Johor, one of the largest in the region and the only capable of coverting big ships into vessel that can process and store oil and gas structure.
It could win more jobs. petronas could give it some big project after winnin the right to develop 4 oilfields in Iraq last year.
According to an MIDF Research report, this was based on the industry price/earnings ratio (PER) band of 12 to 15.8 times to MMHE financial year 2010 earnings.
MMHE is a wholly owned subsidiary of shipping giant MISC Bhd. It is a key revenue contributor to its parent company and recorded a net profit of RM284mil on revenue of RM6.15bil in the financial year ended March 31, 2010.
MISC's is likely fall following the listing of MMHE. this becasue MISC will no longer own 100% of MMHE and will no tbe able to equity account MMHE's business into is consolidated group earning. MMHE's oil and gas and heavy engineering business are the jewel in MISC's crown. its financial summmary shows that MMHE contributes over 40% to MISC's net profit in FY2010. MMHE also has an order of more than RM6 billion as at Dec, 31, 2009.
MMHE, which specialises in engineering and construction, marine repairs and conversion, currently has an order-book of more than RM6bil.
MIDF Research expected the IPO to be beneficial to MISC as the funds raised could be used for further expansion such as acquisition of more tankers.
“Although there would be dilution to MISC’s income from MMHE, we expect the impact to be minimal.
“The RM300mil cash dividend from MMHE and the funds raised from the IPO will also reduce MISC’s gearing level from 0.37 to 0.29 times,” it said
MMHE is a wholly owned subsidiary of shipping giant MISC Bhd. It is a key revenue contributor to its parent company and recorded a net profit of RM284mil on revenue of RM6.15bil in the financial year ended March 31, 2010.
MISC's is likely fall following the listing of MMHE. this becasue MISC will no longer own 100% of MMHE and will no tbe able to equity account MMHE's business into is consolidated group earning. MMHE's oil and gas and heavy engineering business are the jewel in MISC's crown. its financial summmary shows that MMHE contributes over 40% to MISC's net profit in FY2010. MMHE also has an order of more than RM6 billion as at Dec, 31, 2009.
MMHE, which specialises in engineering and construction, marine repairs and conversion, currently has an order-book of more than RM6bil.
MIDF Research expected the IPO to be beneficial to MISC as the funds raised could be used for further expansion such as acquisition of more tankers.
“Although there would be dilution to MISC’s income from MMHE, we expect the impact to be minimal.
“The RM300mil cash dividend from MMHE and the funds raised from the IPO will also reduce MISC’s gearing level from 0.37 to 0.29 times,” it said
Public offering open from now until 14 October 2010 Thursday. You can get IPO form from your dealer representative @ remisier.
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