KUALA LUMPUR: Publishing company Sasbadi Holdings Bhd made a strong debut on the Main Market of Bursa Malaysia Securities on Wednesday, opening at RM1.75 which was a hefty premium of 56 sen above its offer price of RM1.19.
At 9.02am, it was trading at RM1.86, up 67 sen. There were 8.85 million shares done at prices ranging from RM1.75 to RM1.89.
Under its listing exercise, it raised a total of RM68mil.
The IPO included 21.20 million new shares of which 6.35 million shares were offered to the public, 5.70 million new shares for eligible directors, staff and persons who contributed to the group’s success and 9.15 million shares were placed out.
Sasbadi also offered for sale up to 35.95 million existing shares of which 12.70 million were placed out to approved Bumiputera investors and 23.25 million shares would be placed out.
Analysts had an indicative fair value of RM1.30 for Sasbadi shares.
“Based on CY15 EPS of 10.3sen, we derive an indicative fair value of RM1.30 for Sasbadi, at 20% discount to market price-to-earnings ratio of 16.1 times, the discount for its small cap status. This represents an upside potential of 9%,” said Maybank Investment Bank Research.
The research house said Sasbadi is one of the most established publishers in Malaysia, established in 1985.
Maybank Investment Bank Research added the company’s core activities are print publishing, focusing on primary and secondary school education, which are mostly based on the Malaysian national school curriculum. It also publishes other non-curriculum based educational materials and undertakes online publishing.
Sasbadi’s publishing business is complemented by the distribution of applied learning products (APL), comprising of miniature building blocks, devices for measuring and analysing live signals, just to name a few.
The company also supplies electronic dictionaries, publishing of general title books, distributing third party publications and paper trading.
Bernama reported Sasbadi posted a pre-tax profit of RM4.04mil for the third quarter ended May 31, 2014 on the back of RM17.94mil in revenue.
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