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KUALA LUMPUR: Education provider JM Education Group Bhd aims to be the third listing on the Leading Entrepreneur Accelerator Platform (LEAP) Market, pending approval from Bursa Securities.
According to an information memorandum filed with the stock exchange, the group is primarily involved in the provision of educational counselling and student placement services.
It also offers technical and vocational education and training (TVET) services through Miraj Academy in Kuala Lumpur.
Based on its 2016 financial results, overseas markets contribute 76.5% of its revenue while services for the local market contribute 5.7%, and the local TVET segment contributes the remaining 17.8%.
Upon approval of the listing, the group will issue 6.8 million placement shares at 45 sen a share, representing a price-earnings ratio of approximately 13.49 times the company's earnings per share of 3.34 sen for its 2016 financial year.
The number of placement shares represents 10% of the group's enlarged issued share capital of 67.8 million shares upon listing. The group will have a market capitalisation of RM30.51mil.
According to the filing, the proceeds of about RM3.06mil raised from the proposed placement would go towards the expansion and marketing expenses, repayment of bank borrowings and working capital of the company.
About 30% of the proceeds will be allocated for the estimated expenses of the market listing.
JM Education said its dividends over the past five financial years have ranged from RM1mil to RM1.75mil. There was no dividend payout for the 2013 and 2016 financial years as the funds were channeled towards business expansion.
An interim dividend of RM500,000 has been paid out for the financial year ending Dec 31, 2017.
"Currently, we do not have a fixed dividend policy and our payment of dividends is dependent upon our distributable profits, operating results, financial condition, capital expenditure plans, cash position as well as other factors.
"Upon listing, it is the intention of our Board to recommend and distribute minimum dividends of 20.0% of our annual PAT attributable to our shareholders. Any dividends to be declared will be subject to the recommendation of our Board taking into consideration the abovementioned factors," the group said in its filing.
For FY2016, the group generated revenue of RM9.96mil with profit after tax of RM2.26mil. As at Dec 31, 2016, the group recorded total assets of RM11.3mil and total liabilities of RM4.3mil.
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