Capital markets executive summary | Wed 12 Jul 2023
Capital markets executive summary | Wed 12 Jul 2023
MST Golf attracts 5 times oversubscription
The company’s 228m initial public offering (IPO) shares to raise RM184.68m received applications worth RM924m. MST is offering a total of 228m shares comprising 160m new shares and 68m existing shares. The portion for institutions of 178.6m received 6.39 times in applications. The Malaysian public portion garnered 1.5 times with the non-Bumiputra portion at 2.28 times. The 81 sen IPO price values the company at 27 times price-earnings ratio based on FY2022. MST will spend 90% of the proceeds on its expansion in Malaysia and Singapore. The company will list on the Main Market on 20 Jul. RHB is the principal adviser, sole underwriter and sole placement agent.
Request for information to be issued for KL-Sg high speed rail project
MyHSR Corporation will issue the RFI to local and international firms and consortiums for proposals to develop the project based on public-private partnership (PPP). The government is seeking options in reviving the project which was canned by Tan Sri Muhyiddin Yassin in Jan 2021 resulting in Malaysia paying Singapore RM320.27m during a desperate economic period due to covid lockdowns. It was reported in Mar 2023 that MMC, WCT, YTL, Berjaya and MRCB had met the government to discuss their interest in the project which would cost RM60b. 2 of them were in high level talks for partnerships with Chinese state-owned companies, 1 was inclined towards the Japanese and the remainder are awaiting more information from the government.
Boost senior notes rating upgraded to AAA
On 16 Mar, RAM Ratings assigned a A1 rating to the RM39m senior Class A notes to be issued by Salvare Assets Bhd from its 10-year RM300m medium term notes programme. Salvare is a trust-owned special purpose vehicle which will issue the notes to purchase receivables from Boost Credit, which provides financing and insurance to individuals and micro, small and medium-size enterprises. The rating agency upgraded the rating based on the notes issued by Axiata’s fintech unit being fully cash-backed. The upgrade will support the established position of the company in Malaysia and Southeast Asia. The company’s AI-based micro-financing business has already disbursed over RM3b financing in Malaysia and Indonesia. Axiata closed at RM2.55.
Scientex buys 550.67 acres in Johor from PNB’s Seriemas
Fresh from signing an agreement for the purchase of 960 acres of land in Tebrau, Johor from SP Setia for RM548m last week, Scientex Lestari Sdn Bhd signed a conditional sale and purchase agreement for the 6 parcels in Kulai, Johor. Scientex Lestari is 70% owned by Scientex Quatari and 30% by Datuk Azman Mahmud. The company did not perform a valuation on the land, although the price reflected the land’s strategic location, accessibility and surrounding mature amenities. The project will comprise a mixed development with 7,000 affordable houses. The counter closed at RM3.44.
Foxconn dumps weak Indian partner Vedanta
Rumour has it that the break up between Foxconn and Vedanta is due to the latter’s shaky finances. Despite the global semiconductor manufacturer’s withdrawal from the joint venture to build a USD19.5b chipmaking plant with the Indian conglomerate on Mon, it is committed to expanding in India. It will apply for India’s Modified Programme for Semiconductors and Display Fab Ecosystem, a USD10b programme which offers incentives of up to 50% of capital costs for semiconductor and display manufacturing projects. The break up is a setback for Prime Minister Narendra Modi who celebrated the joint venture in 2022 as important in speeding up the growth of India’s semiconductor manufacturing sector. Singapore’s IGSS Ventures and global consortium ISMC also applied for incentives in 2022. ISMC’s USD3b project has stalled because its technical partner, Tower Semiconductor, is being acquired by Intel. IGSS’ USD3b project is delayed because the company will be resubmitting its application.
