oldtown-white-coffee-ipoOldTown Berhad initial public offering (IPO) prospectus is now officially launched after a lengthy preparation and regulatory review process. OldTown is expected to be listed on the Main Market of Bursa Malaysia on 13 July 2011.

Currently, OldTown has 182 outlets in Malaysia, Indonesia and Singapore and plans to open another 38 outlets in the 3 countries this year 2011.

The IPO offer price is fixed at RM1.25 per share for all IPO shares. No bookbuilding exercise in determining the final offer price, and there is no discounted offer price for retail offering. 

Summary of IPO fund raising

No of shares
Malaysian Public
– Bumiputera 5,000,000 1.5%
– Non-bumiputera 5,000,000 1.5%
Directors, Employees 5,000,000 1.5%
Private Placement 48,394,000 14.7%
Public issue 63,394,000 19.2%
Offer for sale 33,000,000 10.0%
Total IPO shares 96,394,000
Enlarged share capital 330,000,000
Funds to be raised RM 120.49 mil

Earnings and net assets


FYE 2009

FYE 2010

Revenue 193,666 255,133
Profit after tax 30,231 31,700
Earning per share (sen) 9.16 9.61
Price earning ratio (PE) 13.64 13.01
Enlarged share capital RM 330,000,000
Market capitalisation RM 412,500,000
Net asset per share RM 0.57
Net tangible asset per share RM 0.41

Where will the IPO fund goes?

Utilisation of proceeds RM’000 Remark
Capital expenditure 38,082
Working capital 10,545
Rapay bank borrowings 5,897
Listing expenses 5,000
Acquisition of companies 19,718 to owners?
Proceeds from offer for sales 41,250 to owners
Total IPO funds to be raised 120,492

Some important dates

Closing date of application – open for 6 days up to 5pm, 29 Jun 2011 (Wed)

Balloting of successful application – 1 July 2011 (Fri)

Allotment of shares to successful applicants – 8 July 2011 (Fri)

Listing date – 13 July 2011 (Wed)

Who are the major shareholders of OldTown?

Major shareholders – after IPO Direct Indirect
Old Town International Sdn Bhd 58.9%
Lee Siew Heng – Group MD 5.4% 58.9%
Goh Ching Mun – Exercutive Director 58.9%
Chin Lai Yoong – Non Executive Director 1.4% 58.9%

How to apply MSM Malaysia IPO?

1. Internet share application via online banking

CIMB www.eipocimb.com
CIMB Bank www.cimbclicks.com.my
Maybank www.maybank2u.com.my
RHB Bank www.rhbbank.com.my
Affin Bank www.affinonline.com
Public Bank www.pbebank.com

You must have internet banking account with those banks above and an individual CDS accounts under your own name (not in a nominee’s name).

2. ATM machines

Affin Bank Ambank
CIMB Bank Bank Muamalat
EON Bank Maybank
Public Bank Standard Chartered Bank (selected branches)
RHB Bank

Likewise, you must have an individual CDS accounts under your own name (not in a nominee’s name) to apply IPO via ATM.

3. Manual white application form submission by post to Malaysian Issuing House Sdn Bhd, Level 6, Symphony House, Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya, or deliver by hand and deposit in the Drop-In Boxes at the Front portion of MIH office address above.

The issuing house is Malaysia Issuing House Sdn Bhd (MIH).

AmInvestment Bank Bhd is the principal adviser, managing underwriter, joint underwriter and joint placement agent while CIMB Investment Bank Bhd is the joint underwriter and joint placement agent for the IPO exercise