Pestech makes lacklustre debut on Bursa Malaysia

KUALA LUMPUR: Integrated power technology company, Pestech International Bhd made a lacklustre debut on Bursa Malaysia on Wednesday.
At 9am, it was down three sen to 97 sen. There were 429,000 shares done. Its offer price was RM1.
The FBM KLCI
was up 2.18 points to 1,567.5. Turnover was 14.45 mikllion shares done
valued at RM9.56mil. There were 76 gainers, 28 losers and 72 counters
unchanged.
Under its listing exercise, it raised RM12.88mil
which involved the sale of 12.88 million shares of 50 sen each at an
offer price of RM1 each.
The group recently received two letters
of award amounting to RM105.73mil for a project in SCORE, Sarawak; and
another project in Teluk Ramunia, Johor. These projects were awarded by
Sarawak Energy Bhd and Tenaga Nasional Bhd respectively.
RHB
Research Institute had valued Pestech at RM1.14 a share, based on a
target multiple of 7.2 times on its FY13 EPS forecast of 15.9 sen.
“Our
PER target for the stock is at a 10% discount to the small market cap
construction sector average of about 8.0 times due to: 1) significantly
smaller scale of operations; 2) foreign country and exchange risk; and
3) dependence on Tenaga Nasional. Pestech has not set out a formal
dividend policy,” it said.

very new stock, untested unproven unknown