Capital markets news summary for Fri 31 Mar 2023

Capital markets news summary for Fri 31 Mar 2023

Creador to exit Mr. DIY by disposing remaining 4.92%

The 464.55m shares are being offered by the private equity firm for RM1.43 a piece, 6.54% discount to the counter’s last close. 322m shares will be sold to other investors for RM460.46m cash. CLSA and Credit Suisse have been appointed as placement agents. 142.5m shares or 1.51% will be made available to Creador’s management and select employees for the same price of RM1.43 thus raising RM203.78m. A month ago, Creador ceased being Mr DIY’s substantial shareholder after selling 65m shares thereby reducing its stake to 4.92%. Mr DIY was listed in Oct 2020 at RM1.60 per share with Creador holding 15.3% as one of the early stage investors. The Bee Family Ltd is the company’s largest shareholder with 50.76%. For 2022, the company made a net profit of RM472.95m, up 9.52% from RM431.83m. Revenue jumped 18.15% from RM3.37b to RM3.99b. The counter closed at RM1.53.

Oyen pet insurance hits RM100m coverage

The company was founded in 2021 during the Covid pandemic when pet owners struggled to pay for their pets’ veterinary bills. Since then, the company has been known to provide coverage for up to RM8,000 per year and hassle-free claims payout. The insurance protection is offered in partnership with MSIG Insurance (Malaysia) Berhad. The company is experiencing 10% monthly growth in revenue. Customers do not need to visit a panel veterinary clinic as the insurance coverage is available at all veterinary clinics in Malaysia and they can claim their expenses on Oyen’s online platform. The company had earlier raised RM1.7m seed funding from, among others, Hustle Fund, a startup fund. Oyen is targeting coverage for 50,000 pets in Malaysia and 100,000 in Southeast Asia by 2025 , setting a goal of RM800m in insurance coverage at the top end. The company recently introduced a travel insurance product for pet owners with the benefit of pet boarding up to RM1,000 for travel delays.

MyEG partners with China’s customs to facilitate trade processing

The company signed a partnership agreement with East Logistics-Link Co Ltd – a wholly-owned agency of the General Administration of Customs of China (GACC) – to jointly provide a full suite of cross-border trade facilitation services on its blockchain platform Zetrix. Documents relevant to trade including certificates of origin, food safety, quarantine and bill of lading can be issued on the chain thereby availing the data accurately in real time for tariff computation and customs clearance. For imports into China, Zetrix will connect to China’s blockchain platform. MyEG is targeting international firms which export to China to use its platform and benefit from faster and more convenient clearance processing. MyEG anticipates expanding the services to include supply chain financing, digital financial instruments and payment settlement to enable smart contracts which will reduce counter-party risk and minimise manual interventions. The counter closed at 73 sen.

Alibaba’s Cainiao set for Hong Kong IPO

Cainiao Network Technology Co – the group’s logistics division – is working with banks including China International Capital Corp and Citigroup Inc for a listing as early as end-2023. The company is currently valued at USD20b and has not decided on the IPO size. Alibaba unveiled plans this week to carve up its USD250b business into 6 main units covering e-commerce, media and the cloud. Each unit will explore an IPO and Alibaba will give up control in some of them. Cainiao will be the first of Alibaba’s 6 business units to go public. The company promises to deliver packages in China within 24 hours and globally within 72 hours. It directly operates 9 overseas sorting centres and partners with more than 500 logistics companies worldwide. Revenue for the quarter ended 31 Dec 2022 jumped 27% to CNY16.6b (USD2.42b) supported by upgrades in consumer logistics services and international fulfilment solutions.

TSMC calls for Taiwan to attract foreign chipmaking equipment makers

Taiwan Semiconductor Manufacturing Company (TSMC) says that the country needs to build a more complete domestic semiconductor supply ecosystem. This comes as US sanctions are curbing the flow of technology to China. The company sees Taiwan filling the gap by supplying the machines needed to make chips, and at the same time, securing TSMC’s own supply chain. This means investing more in basic science and cutting-edge research in upstream technologies to produce the equipment and materials to stay competitive. Separately, Taiwan is asking the US for a double tax treaty if it wants to attract Taiwanese chipmaking companies to the US. Taiwan’s companies pay an effective tax rate of 51% on profits earned in the US including withholding taxes on dividends repatriated. The US government are working on an arrangement without recognising Taiwan’s independence which would infuriate China.