Reports » Malaysia

Malaysia stock market and companies daily report (March 08, 2013)

Contributed by Shares Investment

PPB Plans RM590m Capex For Two Years
PPB Group has committed to spent RM590 million as capital expenditure (capex) for the next two years, with a significant amount assigned to the grains trading, flour and feed milling division. Group managing director, Lim Soon Huat stated the capex amount will vary based on the timing of projects coming on stream. “The capex is on a project basis. It can spill over the period of two to three years,” he told a press and analyst briefing here yesterday. Lim said RM307 million would be spent on its flour milling operations, held by its subsidiary, FFM. He said the capex would also include the expansion of overseas flour milling businesses. Lim said the second highest amount of RM183 million would be used for its cinema business under the group’s wholly-owned Golden Screen Cinemas (GSC). According to GSC chief executive, Koh Mei Lee, a number of cinemas will open in the next two years. Furthermore, the capex would also be used to upgrade the current cinemas besides converting some of them into digital cinema.
Significance: According to its chief financial officer Leong Choy Ying, the figure might range from RM150 million to RM200 million per year, depending on the company’s projects in the pipeline and timeframe. The highest investment will be for its flour milling and cinemas divisions which are its larger core segments.

Sona Petroleum Eyes RM550m Fund Raising From IPO
Sona Petroleum, formerly known as Titanium Windfall, aims to raise up to RM550 million from its initial public offering (IPO) practice on the main board of Bursa Malaysia. In a filling to Securities Commission Malaysia yesterday, the firm said that the IPO comprises of up to 1.1 billion new shares of one sen each, together with up to 1.1 billion free detachable warrants on the basis of one warrant for every one new share subscribed. Sona revealed in its prospectus exposure that 141 million shares or 10 percent of its paid-up share capital will be allocated as the retail offering, whilst the remaining stake will be the institutional offering via private placement. “We are offering up to 1.1 billion shares so as to raise up to RM550 million under our IPO, as we believe a larger capital base may give us more options when we acquire an asset as our qualifying acquisition,” it said. Sona is a special purpose acquisition company (SPAC) formed for the acquisition of assets in the upstream segment of the oil and gas value chain.
Significance: Upon listing, the company intends to set aside 90 percent of its IPO proceeds for its qualifying acquisition and thereafter, for other asset acquisition. Apart from the IPO proceeds, a total of about RM33.8 million will be used as working capital to finance the daily operational costs.

IRM Group Cleared Of Suspension After Submitting Latest Financial Results
IRM Group’s share price rose yesterday after Bursa Malaysia Securities said the counter would not be suspended today after they submitted their financial results for the fourth quarter ended 31 December 2012 on Wednesday. It reported wider net loss of RM10.33 million for fourth quarter ended 31 December 2012 versus net loss of RM3.59 million a year ago. Its revenue fell to RM20.84 million from RM39.52 million, during the same period. Net loss for its full year ended 31 December 2012 rose to RM16.85 million from RM4.60 million in FY11. Revenue during the period declined to RM114.74 million from RM166.61 million. Its share price closed at 13 sen with 28.4 million shares traded. The stock fell to a low of 7.5 sen on 5 March 2012 when Bursa gave a warning to the company on 4 March 2012 that the counter will be suspended if they fail to submit the outstanding financial statement within 5 market days.
Significance: IRM Group on 21 February went to a high of 41 sen after the announcement that a new substantial shareholder, Chan Pey Kheng acquired 10 million shares or 7.69 percent of the company. Subsequently, the share price dropped to a low of 8.5 sen after the cessation of major shareholders, Azhra Assets Management Sdn Bhd and Eksklusif Masyhur Sdn Bhd.