Capital markets executive summary | Wed 26 Jul 2023

Capital markets executive summary | Wed 26 Jul 2023

Sentral REIT to place shares to buy Menara CelcomDigi

The real estate investment trust (REIT) entered into a conditional sale and purchase agreement (SPA) with Puncak Wangi Sdn Bhd, a wholly-owned subsidiary of Malaysian Resources Corp Bhd (MRCB), to acquire the 27-storey office building in Petaling Jaya for RM450m. The price will be paid with the proceeds of equity and debt fundraising exercises. The REIT will place up to 123.72m shares or 11.5% of existing units issued, including 34.56m shares for MRCB to maintain its 55.88% unitholding in Sentral. The remainder will be placed out to institutional investors via bookbuilding. The 450k square foot building with 6 podium levels and 3 basement parking levels will expand Sentral’s total asset size by 21% from RM2.15b at 31 Dec 2022 to RM2.6b. The price is based on the market valuation by CBRE WTW Valuation & Advisory Sdn Bhd, an independent registered valuer appointed by Sentral. The acquisition will be completed by end-2023. Sentral REIT closed at 83.5 sen while MRCB closed at 39 sen.

Eternal Icon’s ASEAN Green MTNs given final AAA rating

Eternal Icon is a special purpose vehicle for the securitisation of Plaza33, an office tower in Petaling Jaya. With 2 towers of 14 floors each, the office building is multi-tenanted. There are also 2 levels of retail space and 7 car park levels. RAM Ratings assigned the final rating to the RM87m senior class medium term notes (MTNs) to be issued under the RM400m MTN programme. This will be the first ASEAN Green MTNs in Malaysia to be secured against an office building. The issuance proceeds will be used to early redeem the outstanding senior class MTNs under the MTN programme on 28 July 2023. RAM took into account the final coupon rates, transaction structure, and relevant transaction terms and documents. They are largely in line with RAM’s expectations when the preliminary rating was assigned on 21 Feb 2023.

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MyMBN closes at 28% premium on ACE Market listing

The bird’s nest supplier ended the day 6 sen higher than its initial public offering (IPO) price of 21 sen. It was the 4th most active stock on Bursa with 103.35m shares changing hands. Apex Research computed a fair value of 30 sen for MyMBN based on projected earnings per share (EPS) of 1.9 sen for FY2024 and 10% premium over Bursa’s Consumer Products and Services Index 2024 forward price-earnings ratio (PER) of 16.2 times. Rakuten Trade set a target price of 27 sen based on 16 times PER over FY2024 EPS of 1.7 sen, a 10% premium over the average PER of its peers on Bursa. MyMBN raised RM20.58m by issuing 98m shares. RM6m is for business expansion, RM6.6m for additional purchases of raw unclean edible bird’s nest, RM1.68m for establishing 3 bird’s nest collection centres in Sabah and Sarawak, RM1.25m is for the expansion of processing and sale of raw clean edible bird’s nests, RM2.05m for working capital, and RM3m for listing expenses.

Keyfield International to list on Main Market

The company that charters accommodation vessels will issue 208.96m new shares in an initial public offering (IPO). 40m shares are for the Malaysian public. 24m shares are for directors, employees and persons who have contributed. The company will privately placement 73.19m shares to selected bumiputra investors approved by the Ministry of Investment, Trade and Industry. It will also privately place 71.77m shares to selected investors. The issue price of the shares has not been announced. Keyfield’s issued shares will grow to 800m after the IPO.

L’Occitane owner considers USD4b buyout

The company’s portfolio includes L’Occitane en Provence, Melvita organic beauty products, Elemis collagen creams, Grown Alchemist anti-ageing serums and Korean skincare brand Erborian. The company, which is based in Luxembourg and Geneva, raised USD787m in the 2010 listing in Hong Kong. L’Occitane shares have fallen 20% in the last 12 months. Reinold Geiger, who owns 70% of the company, is mulling taking it private and is exploring financing options. Geiger may relist L’Occitane in Paris or another European market later.