New Listing Sasbadi rises 59%, beats estimates

by **Cals** Wed 23 Jul 2014, 13:09

New Listing Sasbadi rises 59%, beats estimates

Business & Markets 2014

Written by Gho Chee Yuan & Chong Jin Hun of theedgemalaysia.com

Wednesday, 23 July 2014 10:06

KUALA LUMPUR (July 23): Sasbadi Holdings Bhd shares rose as much as 70 sen or 59% to RM1.89 before reducing gains on the company's maiden trading day on Bursa Malaysia.

This compares to education material publisher Sasbadi's initial public offering price (IPO) price of RM1.19 for its shares.

Sasbadi was traded at RM1.70 at 9.44am with some 28 million units done. The bourse's second most-active stock was also the second-largest gainer.

Earlier, Sasbadi had opened at RM1.76 at 9am.

The public issue portion of Sasbadi's IPO aimed to raise RM25.23 million to establish applied learning centres, and part finance the group's proposed acquisition of publishing businesses.

The public issue comprised 21.2 million new shares in the firm at RM1.19 each. The IPO includes an offer for sale of up to 35.95 million existing shares at a similar price by major shareholders in Sasbadi.

Sasbadi's share price has beaten analysts' estimates. Public Investment Bank Bhd has a fair value (FV) of RM1.50 for Sasbadi shares while Hong Leong Investment Bank Bhd has an FV of RM1.52 for the stock.

Sasbadi is primarily a publisher of educational materials, undertaking print publishing focusing on primary and secondary school education.

While most of its educational materials are based on the Malaysian national school curriculum, the group also publishes other non-curriculum-based educational materials and general title books.

The publisher also undertakes online publishing of educational materials based on the national school curriculum. Sasbadi's business is also complemented by the distribution of applied learning products designed to provide hands-on learning experience to students.

These products comprise miniature building blocks and mechanical, electrical and electronic components, as well as devices for measuring and analysing live signals, besides software to create measurement and control systems.

Alliance Investment Bank Bhd is the principal adviser, underwriter and placement agent for the IPO.