TIP OF ICEBERG: Berjaya Auto, Caring Pharmacy IPOs to raise combined RM101.65m
TYCOON Tan Sri Vincent Tan Chee Yioun is listing two of his companies this year for RM101.65 million, which will result in a combined market capitalisation of more than RM800 million.
Berjaya Auto Bhd (BAuto) and Caring Pharmacy Group Bhd moved a step closer to Bursa Malaysia's Main Market after the companies issued their prospectuses yesterday.
The listings are, however, just the tip of the iceberg, as Tan, Malaysia's 10th richest man, has also hired Maybank and UBS AG to advise him on the listing of 7-Eleven Sdn Bhd.
The 7-Eleven convenience store franchise's IPO may value the company at US$800 million (RM2.53 billion), based on current valuation.
Tan owns 20.35 per cent of Caring Pharmacy which has 23 wholly-owned and 53 partially-owned community pharmacies under its banner.
Formed in 1994 by five Universiti Sains Malaysia pharmacists, Caring Pharmacy is making an offer for sale of 35 million new shares at RM1.25 each to raise RM43.75 million.
Based on its IPO price and enlarged issued and paid-up capital of 217.7 million shares, the total market capitalisation is about RM272.133 million.
Tan also plans to raise as much as RM57.90 million by listing Berjaya Auto Bhd (BAuto) on the Main Market.
BAuto will be offering 82.76 million new shares at an offer price of 70 sen each.
Based on the issue price of 70 sen per share and a paid-up capital of 802.76 million shares, BAuto will have a market capitalisation of RM561.9 million upon listing.
It will also value the BAuto stock at a price-to-earnings multiple of about 11.1 times based on the earnings per share of 6.3 sen.
Some 72 per cent of the amount raised, or RM41.7 million, will be used for working capital.
The listing will provide a platform for Japanese carmaker Mazda Motor Corp to enhance its presence here.
BAuto's main business is BerMaz Motor Sdn Bhd, which distributes Mazda cars. Tan-controlled Berjaya Corp (BCorp) owns 75.4 per cent of Bermaz Motor.
The planned listing will see BAuto buying all Bermaz shares from BCorp and other shareholders for RM503.99 million, or 70 sen apiece, which will be paid via 719.99 million new BAuto shares at 70 sen each.
The prospectus showed that out of the 82.76 million new shares, 41.449 million units will be placed out to Malaysian institutional and selected investors.
Some 10.157 million shares will be allocated to approved Bumiputera investors, 19.157 million shares for BCorp shareholders and the balance 12 million shares for eligible directors and staff.