OCK opens at 42 sen with 6 sen premium

KUALA LUMPUR: OCK Group Bhd opened at 42 sen or six sen above its offer price of 36 sen when it made its debut on the ACE Market of Bursa Malaysia Securities on Tuesday.

At 9.02am, the shares of the telecommunications network services provider was up 5.5 sen to 41.5 sen. There were 6.86 million shares done.

The FBM KLCI slipped 0.7 of a point to 1,635.26. Turnover was 25.77 million shares valued at RM14.71mil. There were 84 gainers, 33 losers and 82 counters unchanged

RHB Research Institute valued OCK at 40 sen a share, based on a target multiple of 10 times on its FY13 EPS forecast of 4.0 sen.

“Our price-to-earnings ratio target for the stock is at a 50% discount to the large market cap telecommunications sector average of about 19.8 times,” it said.

The research house said this was due to the significantly smaller scale of operations; potential foreign country and exchange risk; dependence on DiGi and Ericsson; and the lack of a well-articulated dividend policy.

OCK raised RM27mil from its listing exercise which involved the issuance of 75 million new shares at an issue price of 36 sen each.

It offered 58.5 million new shares to institutional and selected investors, 7.0 million new shares to the public and the remaining 9.5 million units to eligible employees and persons of the group.

Its offer of 7.0 million new shares reserved for the public was oversubscribed by 8.3 times. There were 3,087 applications for 65.06 million new shares.

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