Dayang Ent plans dividend payout

The oil and gas service provider aims to return 3.65 sen per share to shareholders, that's a net dividend yield of 2.52 per cent based on the IPO price of RM1.45 apiece

DAYANG Enterprise Holdings Bhd, an oil and gas service provider set to be listed on Bursa Malaysia's main board next month, plans to pay a net dividend of 3.65 sen per share this year.

This translates to a net dividend yield of 2.52 per cent based on the initial public offering (IPO) price of RM1.45 a share, according to its listing prospectus launched yesterday.

The company plans to raise RM124.5 million from selling 85.87 million new shares to the public before the scheduled listing on April 28.

Managing director Tengku Yusof Tengku Ahmad Shahruddin said he is not overly concerned with the current volatile stock market. He believes that the issue will fetch a fair price.

"We are not worried. We wouldn't have come to the market if we have to sell the shares at a discount," he said in Kuala Lumpur after a launching ceremony witnessed by Deputy Prime Minister Datuk Seri Mohd Najib Razak.

Tengku Yusof said Dayang Enterprise's IPO price was set on a forecast price-to-earnings ratio of 14.12 times, based on the projected 10.27 sen earnings per share for the 15-month period ending December 31 2008.

The Miri-based company made RM28.9 million net profit in the financial year to September 2007, on revenue of RM127.1 million. Half of its revenue are from providing offshore topside maintenance services.

Dayang Enterprise is 45 per cent-owned by Naim Cendera Holdings Bhd, another main board company. It counts oil majors Petronas Carigali, Sarawak Shell, Sabah Shell, ExxonMobil and US-based Murphy Oil as clients.

Tengku Yusof said the company still has RM627 million worth of orders that can last for the next three years. It has also tendered for various contracts amounting to RM595 million, he said.

The share sale will help finance the construction of its fourth vessel, which is a workboat that will be ready by middle of 2009. About half of the money raised will be used to redeem the company's Islamic bonds.

Public investors can apply for the 17.6 million shares made available to them, while 59.7 million shares will be placed out to private investors. The balance 8.5 million shares are for company staff.