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

next in line for nov listing...indicative price is 70c...not planning on giving dvd yet...caution on their planned esos

profit increasing since 2010...highest in FYE APR13...nicer looking cars did help

This post has been edited by hyzam1212: Sep 10 2013, 07:56 PM

The entire proceeds from d IPO exercise goes to the Company

I got an offer to buy this IPO. Is this a good buy?

r u one of the employees? if u got cheaper than IPO price, i consider as a good buy for a matter of less risk taken

This post has been edited by hyzam1212: Sep 11 2013, 10:35 AM

Offer via private placement/miti/staff?

yes. offer for employees.

If employees, u can gather insights of the Company
Easier for u to decide

that's a big NO-NO for me....

VT counter

Bjfood is performing wo

auto industries... wo

This post has been edited by xuexueli: Sep 12 2013, 12:24 PM

Wat is the reasonable PE for auto industry?

miti application close today 5pm. listing would be mid nov.

Wat is d indicative price?

still got time to think over

Did they offer to Bjcorp shareholders?

I hold bjtoto shares. No offer to me

Even got offer, it only for BJ Corp shareholders only

I dun think so

EX-date 08/10/2013
Entitlement date 10/10/2013
Entitlement time 05:00:00 PM
Entitlement subject Others
Entitlement description RESTRICTED OFFERING OF 19,157,000 NEW ORDINARY SHARES OF RM0.50 EACH IN BERJAYA AUTO BERHAD (“BAUTO”) (“ISSUE SHARES”) TO THE ENTITLED SHAREHOLDERS OF BERJAYA CORPORATION BERHAD (“BCORPORATION”) (AS DEFINED HEREIN) IN CONJUNCTION WITH THE LISTING OF BERMAZ MOTOR SDN BHD, VIA BAUTO, ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD (“RESTRICTED OFFERING”)

So I'm correct, only BJ Corp shareholders are entitle for "special" allocation

For those who want a piece of BAuto, dun forget to buy Bjcorp on 7/10/2013
Refer post #39

BJFood quite good. For Berjaya Auto, I think one should study the sales statistics and the upcoming models of Mazda since it will contribute to their revenue and earnings.

I believe mazda car is getting accepted by Malaysian? Don't you?

Agreed

This will surely includes the plan for Malaysian expansion

mazda-ceo-says-aims-to-sell-around-500000-mazda3-vehicles-a-year

http://www.theedgemalaysia.com/business-ne...les-a-year.html

This post has been edited by hyzam1212: Oct 9 2013, 11:35 AM

There is no allocation of shares to public for subscription

Really?

Shocked me

Yup as per draft Prospectus

nothing so shocking also, this is something like "rewarding" bcorp shareholders and those private placees only... most of them also offer for sale, the public issue is not much also..

in this case sure fly loh!.

Me too
But Bjcorp offer shares to its shareholders instead

Will b listed on 18/11 as per Surat Akuterima

Prospectus

http://www.bursamalaysia.com/market/listed...cements/1436689

KUALA LUMPUR: Berjaya Auto Bhd is offering 82.76 million new shares under its initial public offer (IPO) at an offer price of 70 sen each to raise RM57.90mil as it seeks a listing on the Main Market of Bursa Malaysia.

In its prospectus released on Friday, it said of the 82.76 million new shares, 41.449 million units were would be placed out to Malaysian institutional and selected investors.

It added another 10.157 million shares would be allocated to approved Bumiputera investors while 19.157 million units would be reserved for entitled shareholders of Berjaya Corporation and the remaining 12 million shares for eligible directors and employees.

Berjaya Auto said of the RM57.90mil in proceeds, 72% of the proceeds or RM41.70mil would be used for working capital.

It said the issue price was based on the price-to-earnings multiple (PER) of about 11.1 times based on the earnings per share of 6.3 sen.

“Based on the issue price of 70 sen per issue share and the issued and paid-up share capital of 802,76 million shares upon listing, the total market capitalisation of our company upon listing is approximately RM561.9mil,” it said.

public cannot apply thru ipo meh?? I must apply for this ipo!!!!

Nope
Unless u r existing BjCorp shareholders

IPO without direct public retail application

Oredi mentioned earlier
No surprise at all

I know, just telling only. Some more they advertise in newspaper

Which newspaper?

NST

Oic...
Saw Caring in The Sun oni

Caring IPO don't have in NST

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

http://stocksmalaysia.blogspot.com/2013/10...aise-rm-58.html

This post has been edited by 5w4tch: Oct 19 2013, 04:55 PM

Not bad, got some upside compare with IPO price

Too bad cannot apply "directly"

Existing BjCorp shareholder is entitle to apply

Xtract from The Star
Market cap - RM561.9 mil
PE - 11.1 times based on EPS 6.3 cents

still havent reflect in m2u, how come?

ipo not open for public.

oic, no wonder. The Edge did not mentioned about this

initial public offering not open to public. Good job la VT.

It won't appear in m2u
They never allocate shares to public for application
Instead they offer to Bjcorp shareholders oni

if you really want it, can buy open market

Dun think many Ppl will buy from market
Most Ppl target to hit n run when strike IPO

maybe true, but we don't know how this IPO would perform. Most ppl telling mazda cars are getting popular among Malaysian

Was given some BAuto IPO shares to buy at 0.70. Good to buy ?

Would appreciate some advice. Thanks !

U got it via staff allocation?

No, I am a minor Bjcorp shareholder.

Do we still need to ballot ?

Oic...
Was informed can reach RM0.80 upon listing

Nope since this allocation is via Bjcorp

someone bought Bj share and received compliment voucher for Berjaya Air and Hotel. Wow.

U r rite
I rec'd complimentary vouchers fr Kenny Rogers, Wendy's, Starbucks, Papa John's, Krispy Kreme, Borders n etc

u r holding bjcorp or food...i think i may buy them in d future...its delicious

Bjcorp

voucher but not complimentary. Kenny Rogers is buy 2 free 1; krispy kreme is buy 1 dozen free half doz; papa johns is 50% off (which u can buy from GROUPON or some coupon co)...Starbucks 1 hot coff with any beverage.

so, not free.. still hv to buy something.

yala...i can imagine, often buying fr grupon etc...its the same old voucher huh

Attending BJCORP AGM also can get hotel stays.... but starting this year, no more such offers

I think I will forgo this IPO ...................

if you attend the AGM of BJcorp, BJLand and BJtoto, you still get RM10 krispy kreme, RM20 Starbucks and RM20 Kenny rodgers cash voucher.

so if you attend all 3, you get RM30 krispy kreme, RM60 Starbucks and RM60 Kenny rodgers in cash voucher! oh gosh... though nothing much, but still good isn't it?

if you buy 100 bjcorp shares @RM0.50, = RM50, you get your 50 bucks value back instantly hahaha... good right?

Yeah I mean this one...good very good indeed...conclusively, u onli get free things when attending the AGM eh

PE 11 based on YE 2013 result, they sales getting higher and higher.
Look good

Cash per share also got 50 cents

Look like is a bonus to bjcorp shareholder

Will u apply?

Agreed
However the benefit is too small as they will allocate 100 shares 1st
Thereafter, based on pro-rata basis as per yo shareholdings

I was given same number of shares per Bjcorp shares holding. But small amt and felt not worth the effort to subscribe the IPO, thousand plus only.

This post has been edited by bbgoat: Oct 27 2013, 12:49 PM