Berjaya Auto aims to raise RM58mil from flotation

by **Cals** Sun 20 Oct 2013, 19:19

Published: Saturday October 19, 2013 MYT 12:00:00 AM
Updated: Saturday October 19, 2013 MYT 7:22:27 AM
Berjaya Auto aims to raise RM58mil from flotation
PETALING JAYA: Mazda assembler and distributor Berjaya Auto Bhd is targeting to raise RM57.9mil from an initial public offering (IPO) of 82.76 million shares, or 10.31% of its enlarged share capital, for a listing on the Main Market of Bursa Malaysia.
The firm said in a stock exchange filing that the IPO had been priced at 70 sen per share.
The market capitalisation, based on the issue price as well as the company’s issued and paid-up capital of 802.76 million shares upon listing, would be approximately RM561.9mil.
The issue price was based on a price/earnings multiple of about 11.1 times, based on an earnings per share of 6.3 sen.
Of the new share issuance, 41.449 million would be placed out to local institutional and selected investors, 10.157 million would be allocated to approved bumiputra investors, 19.157 million would be reserved for entitled shareholders of parent Berjaya Corp Bhd and the balance 12 million shares have been set aside for eligible directors and employees.
Post-listing and assuming no employees share options are exercised, Berjaya Corp, via unit Berjaya Group Bhd, would hold a 67.63% stake in the company.
The company said that 72% of the proceeds, or RM41.70mil, would be used for working capital, while about 13%, or RM7.5mil, would go towards the establishment of new sales, service and spare parts centres to expand market presence as well as penetrate further into prime areas of the country.
It said there were plans to strengthen the company’s competitive position by expanding the range of completely-knocked-down Mazda vehicles, increasing the utilisation of local content and expanding distribution network/dealerships.
The company said in a separate statement that the tentative listing date was Nov 18.