Wednesday, January 23, 2013

Tune Ins Holdings Berhad IPO

When all the rumour come out from the street that Malaysia Parliment may dissolve on the 22nd February 2013, Tune Insurance is launching its IPO prospectus on 23th January 2013 and setting their listing date on the 22nd February 2013.

Just pick some of the important fact from StarBiz for a glance of reference.

KUALA LUMPUR: Tune Ins Holdings Bhd plans to raise RM325mil from its listing exercise which involves 210.22 million shares at an indicative retail offer price of RM1.55 a share.
According to its prospectus released on Wednesday, it said the IPO would include a public issue of up to 143.37 million new shares and an offer for sale of up to 66.85 million existing shares.
Tune Ins said the institutional offering comprised of 102.028 million shares and up to 66.85 million offer shares, which would be issued to Malaysian institutional investors and foreign investors and also selected investors. The institutional price would be determined by bookbuilding.
Tune Ins said the retail offering comprised of 41.34 million public shares to Malaysian citizens, companies, cooperatives, societies and institutions and eligible directors and staff at the retail price of RM1.55.
Of the RM222.20mil gross proceeds from the offer for sale and over-allotment option, Tune Ins will use RM133mil or 59.86% to repay borrowings, RM27.2mil as working capital, RM50mil for strategic investments and RM12mil for listing expenses.
In terms of dividends, it targeted a payout ratio of not less that 40% of its consolidated profit in each FY beginning Jan 1, 2013.

KUALA LUMPUR: True to the promise of the three listings for 2013 fromTan Sri Tony Fernandes' Tune Group, the prospectus of Tune Ins Holdings Bhd has been issued, and its listing date slated for Feb 22.
A total of 210 million shares are being issued at an indicative price of RM1.55 per share, with 41.3 million shares being made available to retail shareholders and a further 168.88 million for the institutional portion.
The institutional portion is being sold at a price range from RM1.20 to RM1.55 and post the book-building exercise, a final price will be set, which will then determine the final retail price of Tune Ins stock.
Of all the shares being issued, 143.37 million are new shares while a further 66.85 million are existing shares being issued by parent companyTune Money Sdn Bhd. This will dilute Tune Money's holding in Tune Ins from 80% to 55.85% post IPO. At the indicative price of RM1.55, Tune Money shareholders should pocket RM103.62mil. Using the RM1.55 price, the market capitalisation of Tune Ins would be about RM1.2bil.
Valuation-wise, the RM1.20 price is at 13 times financial year 2013 earnings, while at RM1.55 per share, the price earnings multiple is at 16 times 2013 earnings, bankers familiar with such listings told StarBiz.

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