Berjaya Auto Bhd (BAuto), en route to the Main Board of the local exchange, expects to raise RM57.9 million from its upcoming intial public offer (IPO), according to the company’s prospectus exposure draft posted on the Securities Commission website yesterday.

The IPO involves the issuance of 82.76 million new shares comprising a 10.3% stake in the company. Out of the 82.76 million shares, BAuto will allocate 41.45 million shares to Malaysian institutional and selected investors, 10.16 million shares to Bumiputera investors approved by the Ministry of International Trade and Industry, 19.16 million shares to entitled shareholders of Berjaya Corp Bhd (BCorp) and 12 million through pink form allocations.

“The gross proceeds will be utilised for working capital of our group for 12 months, investment in Mazda Malaysia Sdn Bhd (MMSB), finance capital expenditure within 24 months, repayment of bank borrowings, and the expenses for our IPO,” the company said.

BAuto is the listing vehicle of BerMaz Motor Sdn Bhd, a 75.4%- owned subsidiary of BCorp. BAuto is Mazda vehicles’ distributor, assembler, retailer and after sales services provider. The company is also involved in the domestic distribution of locally assembled Mazda vehicles through Ber-Maz and export of Mazda vehicles assembled in Malaysia.

For its financial year ended April 30, 2012, BAuto’s net profit increased 12.6% to RM40.68 million from the RM36.15 million recorded in the same period in 2011. Its revenue in the same period increased 11.9% to RM663.58 million from the RM592.6 million recorded in the same period a year ago.

The company said it aims to strengthen its position in the automotive segment, increase shareholders’ value as well as increase its market share in the segment that it competes in.

“We intend to achieve our aim through the following strategies – expand our range of complete knockdown vehicles of Mazda and increase utilisation of local contents, expand our distribution network and dealerships and launch the latest models of Mazda vehicles in the Malaysian and Philippine markets,” it said.

As an integral part of the proposed listing, BAuto proposed on Feb 26 to acquire the whole equity interest in Bermaz from six entities, comprising 80 million shares of RM1 for a total purchase consideration of RM503.99 million.

The six entities are BCorp, Podium Success Sdn Bhd, Tunku Aminah Tunku Ibrahim Ismail, BHJ Marketing Sdn Bhd, Konsep Aktif Sdn Bhd and Terrific Dynamics Sdn Bhd.

The payment for the acquisition will be satisfied via the issuance of 719.99 million new shares of 50 sen each in BAuto at an issue price of 70 sen per BAuto share.

“The proposals are expected to unlock shareholders’ value in BAuto. It will also provide a transparent valuation benchmark for the Mazda automotive business of BCorp.

“With the listing, BAuto will have direct access to the equity capital market which will enable it to have greater capital management flexibility. It will also enhance the BAuto group’s corporate stature,” it said in the earlier filing to Bursa Malaysia.

Opening of application 18/10/2013
Closing of application 01/11/2013
Balloting of applications 08/11/2013
Allotment of IPO shares to successful applicants 14/11/2013
Tentative listing date 18/11/2013


This post has been edited by davinz18: Oct 18 2013, 04:04 PM

another pet of VT, any taker here? i no go

Mind to explain why it's a no-go for you?
Please correct me if I'm wrong. I am under an impression that IPO is something worth buying because we can easily buy in cheap (if selected) then sell high.
Newbie here... wish to learn things from different perspective.
Thanks

Personnally do not like automobile industry which is very cyclical, seconly pls check berjaya corp thread....... And find out the reason. It's very obvious answer over there, u should learn from their past experience before u commit urself into it........

NO for me.

i skip this.

Not a fan of any of VT's counters as well, but I'd say the growth prospect of Mazda in Malaysia is rather good.

- CX-5 and the upcoming Mazda6 trumps anything T&H can come up with, and is probably a much better value proposition than the Contis.
- they have nothing on the hybrid front so their sales will not be hit when the hybrid tax exemption eventually lapses.
- looking at urban KL over the past few years, number of Mazda cars OTR are slowly but surely increasing.
- don't think they got much bad rep for unsatisfactory CS either.

Just my 2c.

edit
However, looks like the only way for the man on the street to get hold of this IPO is to be an Entitled Shareholder of BJCorp

This post has been edited by Chinoz: Mar 13 2013, 03:39 PM

looks like lots of people are not a fan of VT

so this would be under-subscribe IPO

let see what happen

No harm done in applying if ur strategy is hit and run....even so many disastrous experiences...BJFOOD did rose for a few days rite upon listing...But trade with caution n dont put ur fortune into it

Technically I feel tht the listing is quite timing due to the reduction of import duties of Japanese cars announcement...The brand is indeed growing looking at the amount of beautifully looking Mazdas on the road...But personally I think they will not grow much if they are only relying on one car brand only...

This post has been edited by hyzam1212: Mar 14 2013, 09:48 AM

When is the IPO out? Have not heard of the news till today...

stay away from vt

Maybank Investment Bank Berhad (“Maybank IB”) is pleased to announce that the Securities Commission (“SC”) had, vide its letter dated 20 August 2013 approved the Proposed Listing pursuant to Subsection 214(1) of the Capital Markets and Services Act, 2007 and the equity requirement for public companies, subject to the following conditions:

(i) BAuto to allocate at least 12.5% of its enlarged issued and paid-up share capital to Bumiputera investors at the point of listing; and

(ii) Maybank IB/BAuto to fully comply with the requirements of the SC’s Equity Guidelines and Prospectus Guidelines - Equity pertaining to the implementation of the Proposed Listing.

The SC had also vide the abovementioned letter, granted its approval-in-principle for the registration of BAuto’s prospectus.

Saw an advertisement in The Sun today
Bjcorp is seeking shareholders approval to float BAuto

i find difficulty to rationalise this IPO. Is the sole business involve the the sales & aftersales of Mazda vehicles?.. Really blur..

Yup

kata kan TIDAK for Berjaya Auto.

but then again they did once for berjaya food.. harping solely on Kenny Roger Roasters... sole business also.. correct?

Yeah correct...and more coming

Circular to shareholders

http://www.bursamalaysia.com/market/listed...cements/1404481