The company split out or demerged, so some of the asset and business being aparted already. So TM value shrinks.

In this case, is TMI considered as a new IPO?

Demerged TM jumps on debut

PETALING JAYA: The de-merged Telekom Malaysia Bhd ™ led market gainers yesterday, climbing 49 sen, or an adjusted 16.07%, to RM3.45.

On its first day of trading minus the value of its domestic and international mobile communications arm, TM International Bhd (TMI), the stock was the leading mover of the KL Composite Index, contributing 3.24 points.

The de-merger exercise was the brainchild of outgoing TM group chief executive officer Datuk Seri Abdul Wahid Omar who will be taking up the position of president and CEO of Malayan Banking Bhd next month.

Yesterday, TM shareholders received one TMI share for every TM share held.

Citi Investment Research analyst Karen Ang, in a report dated April 21 that analysed TM as a de-merged entity having only the fixed-line business, saw "two inter-twined drivers" for the stock's price prospects on a 12-month view.

The drivers are a dividend payout policy and the country's high-speed broadband project.

Ang, who had a "buy" recommendation on the stock, said: "We see dividend policy as a key stock price driver and forecast a payout ratio of 90%, that is 30% higher than TM's minimum RM700mil target - this implies a net 5.5% yield."

Citi saw the dividend supported by free cash flows of RM1.3bil a year over the next three years.

"We believe investors will value TM against DiGi.Com Bhd - the only other Malaysian play though wireless - locally and then against the likes of Chunghua Telecom (of Taiwan) and Korea Telecom (of South Korea) regionally," the report said.

On the RM15bil high-speed broadband project, Ang said there was "a key risk" as associated capital expenditure would affect TM's ability to pay dividends. On the other hand, the project had the potential to create new revenue streams for TM, she said.

"Project details are in flux right now, given the change in the political climate. We await specifics before incorporating this into estimates," Ang said.

Citi had set its target price per share for TM post de-merger at RM4.80.

Meanwhile, Aseambankers, in a report issued yesterday, had a "fully valued" call on TM.

"Driven by positive news flows and sentiment, short-term price appreciation is not unexpected, although TM's challenges remain unchanged.

"We are still cautious on TM and TMI's immediate-term prospects," it said.

Valuations for telcos in the region had generally fallen by price/earnings multiples of one to two over the past three months or so, the research house said.

"Whilst this negatively affects valuations for TM and TMI, it has also opened the door for continued optimism that post-listing TMI may conclude a 10% new share placement to a strategic foreign shareholder, such as Emirates Telecommunications Corp," it said.

Though earnings were dilutive, TMI could use the funds from such a move to pare down debt to re-invest in its many emerging market operations.

TMI is the larger entity with an expected market cap of RM24.5bil based on its reference price versus TM's closing market cap of RM12.7bil yesterday.

TMI starts trading on Monday with a reference price of RM7.85.

URL: http://biz.thestar.com.my/news/story.asp?f...53&sec=business

I dont understand.. if yesterday you bought a TM share at RM3.5 you get TMI value at RM7.85 too??

Nope. that was waybefore when TM was at RM 10.90.


you kind of getting yourself confuse

the thing is..TM dropped so tremendously after the demerge.. so how can anyone who has bought tm at rm8 something sell for only rm3 something now..tho' both TMI and TM are doin quite good..but when will only TM goes bac to rm8 something..isnt it unfair for it to drop so terribly after the split? now wat to do wit TM shares of mine?

I believe if you bought before the de-merger, for each TM share you hold you will get TMI share.

I think you're confused.

Every 1 TM share you have you will get 1 TMi for FREE. So, there's no LOSS at all.

So, if you hold 5lots TM, you will get 5 lots TMi. So you will have 10 lots of share in your CDS.

It worth more now. TM already shoot to 3.60's and TMI will hit 8.15..

You must buy it few days ago. This is not true if you buy it now.

yes, I know tat..
now too late... but want to grab TMI after listing on Monday...

TMI will drop..becoz TM share the profit with 3.60 now...haha

Base on 22 april TM Rm11.10 -TM 3.05 IPO...TM=Rm8.05 IPO

Just come across some investment house put a price target of around Rm7.35, some near to Rm8.00 lower than IPO price?

Let see how it will open then.

wow, then I will queue buy at 8.00, not much but 200U

what cherroy say is true...

oh..thx btw.. but wats the price of the TMI share dat i'll get? btw..the share was given under ESOS..so still apply ryt?

TM, TM Int, builders weigh on market

KUALA LUMPUR: Selling of Telekom, TM International and infrastructure stocks Gamuda and IJM dragged the KL Composite Index into the red in the morning session on Tuesday.

However, DiGi was the top gainer in the morning session ahead of the release of its quarterly earnings this evening.

At 12.30pm, the KLCI had fallen 3.55 points to 1,291.76, the FBM Emas fell 36.35 points to 8,693.13 and the Second Board Index gave up 38.22 points to 5,856.09. The construction index lost 2.87 points to 240.43.

Turnover over 244.5 million shares valued at RM411.71mil. There were 189 gainers, 369 losers while 219 counters were unchanged.

Singapore�s Straits Times Index fell 0.74% or 23.56 points to 3,178.07 but Hong Kong�s Hang Seng Index added 1.11% to 35,950.66 and the Shanghai A Share Index added 1.37% to 3,695.37. Japan markets were closed.

Light crude oil for third-month delivery was at US$118.50 (RM373) per barrel while crude palm oil futures fell RM90 to RM3,420 per tonne, in tandem with the fall in rival soyoil.

The ringgit strengthened against the US dollar and it was quoted at RM3.148.

At Bursa Malaysia, the lack of buying support saw the 100-stock retreating from the early high of 1,305.09 as investors decided to stay on the sidelines. The early gains were not convincing enough to attract more investors into the market in the absence of strong corporate leads and also due to lingering concerns about the political situation in the country.

TM International, which was listed on Monday, extended its fall. It was the top loser, sliding 35 sen to RM7.20 while Telekom gave up eight sen to RM3.48. However, DiGi was the top gainer, advancing 30 sen to RM24.40.

Worries about the implementation of infrastructure projects saw Gamuda losing 12 sen to RM3.10 while IJM fell 10 sen to RM6.20.

Oil and gas play eased, with KNM and Shell Refining down 20 sen each to RM6.45 and RM11.40.

Plantations were mixed, with Batu Kawan sliding 20 sen to RM11.30 and Sarawak Oil Palm down 15 swen to RM5.85 but Glenealy added 10 sen to RM5.25. IOI Corp and KL Kepong were unchanged at RM7.55 and RM17.10 respectively.

JPK was the most active with 10.2 million shares done, up 2.5 sen to 25 sen. Tamco, which proposed to distribute 98 sen for every share in Tamco to its shareholders, rose 10 sen to RM1.01.

Tasek, which announced a dividend of 54 sen per share totalling RM99.6mil to shareholders, rose 26 sen to RM4.32.

However, Tamco jumped 13 sen to RM1.04 on plans to distribute 98 sen for every one share of 50 sen each in Tamco to its shareholders.

URL: http://biz.thestar.com.my/news/story.asp?f...21&sec=business

Shall we go for TM and TMi now?

I think it depends if you have already exercised your ESOS before the split. After the split, if you are a TM employee, then you will only get the TM shares because now it is 2 separate companies. I might be wrong.

I will enter when TMI = 7RM

I have entered at 7.05 which i assume is bottom line.
And the buy rate start rising. I expect it will rebound soon