1.1. TYPE OF SECURITIES SOLD
* Offer For Sale
The Offer for Sale comprises of 14,660,000 Heng Huat Shares representing approximately 7.12% of the Group’s enlarged issued and paid-up share capital which will be offered by the Offeror to selected investors.
* Public Issue
The Public Issue comprises of 46,500,000 Public Issue Shares at the IPO Price of RM 0.45 each which represents approximately 22.59% of the Group’s enlarged issued and paid-up share capital. In particular, the IPO of 46,500,000 Public Issue Shares comprises of:
1. Public Tranche : 7,000,000 Public Issue Shares will be made available for subscription by the Malaysian Public
2. Pink Form Tranche : 5,000,000 ...view middle of the document...
45 per share was determined and agreed upon by the Directors, Promoters and Kenanga Investment Bank Berhad after taking into account the prevailing market conditions and the following factors:
1. The net PE multiple of 7.36 times is based on the Group’s net EPS of RM 0.61, computed based on the Group’s audited PAT of RM 9.74 million attributable to the owners of Heng Huat for the FYE 31 December 2013 as well as the issued and paid-up capital before the Public Issue of 159,300,030 shares
2. The consolidated net asset per share of RM 0.23 is computed based on the Group’s audited net assets of RM 37.35 million as at 31 December 2013 as well as the issued and paid-up share capital before the Public Issue of 159,300,030 shares
3. The competitive strengths in term of consistent and reliable supply, process and product development initiatives, strategic location of operations, experienced management team as well as reusing waste to generate biomass energy
1.4. SELLING OF THE SECURITIES
Kenanga Investment Bank Berhad, a participating organisation of Bursa Malaysia Securities Berhad, acted as the Group’s advisor, underwriter and placement agent where they are responsible to acknowledge that the Prospectus constitutes a full and true disclosure of all material facts concerning the Group’s IPO based on all available information. Apart from that, Wyncorp Advisory Sdn Bhd, a licensed investment advisor under Securities Commission of Malaysia, acted as the Group’s corporate finance advisor who is responsible in conducting activities related...