Research houses see firmer Karex value
KUALA LUMPUR: Listing-bound Karex Bhd, the world's largest condom manufacturer, has been valued higher than its initial public offering (IPO) price of RM1.85.
JF Apex Securities Bhd, Maybank Investment Bank Bhd and TA Securities Holdings Bhd have valued Karex at RM2.07, RM2.16 and RM2.40, respectively, mainly on the back of the company's promising track record as well as robust industry growth.
Karex will be listed on Bursa Malaysia's Main Market on November 6.
According JF Apex, global sales of condom saw a compounded annual growth rate (CAGR) of seven per cent from 2007 to 2011.
The industry growth is expected to accelerate to 7.5 per cent in the coming years, hitting 30.4 billion pieces in 2016.
For the financial year 2013, Karex's revenue jumped 22.6 per cent to RM231.4 million from RM188.8 million a year ago.
The growth was achieved on the back of higher sales volume, while the easing of latex price and higher production expanded earnings margins.
Karex is planning to double its annual production capacity to six billion pieces in 2015 from three billion currently.
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