Today The Star just shared an article on Leong Hup's final retail price - and it is fixed at RM 1.10 per share.
With the IPO coming real soon (indicative listing date is less than 10 days away, expected 16th May) - I believe that the counter will be a very good investment, and is expected to shoot up a lot. Most importantly, it has a very good bunch of cornerstone investors - including billionaires Tan Sri Quek Leng Chan as well as Tan Sri Chua Ma Yu. We all know that these two bankers are very shrewd investors - and I am sure the fund managers who have roped them in would have promised them generous returns upon IPO.
The EPF has also shown its interests, together with large funds such as the AIA Group as well as Maybank Asset and RHB Asset.
One other big investor is the Louis Dreyfus Company - who is investing more in the food chain after its massive investments in China's Luckin Coffee.
I would expect the counter to shoot up at least 30% on opening day; perhaps to open from RM1.10 and hit at least RM1.40+ on day ONE before finally settling at around RM 1.25-1.30.
Here's The Star's article today.
Leong Hup International Bhd's institutional price and final retail price has been fixed at RM1.10 per share. Maybank Investment Bank said on Tuesday the price was fixed after the completion of the bookbuilding process under the institutional offering on May 3. The retail offering closed at 5pm on the same day. Maybank IB, as the stabilising agent for the initial public offer (IPO), said the shares may be subject to stabilising agent. It could buy an aggregate of up to 140.62 million shares to undertake the stabilising action within the 30-day period after the listing.
Leong Hup targeted to raise up to RM1.2bil from its IPO that includes an offer for sale of shares held by existing shareholders and the issuance of new stocks. The IPO involves the offer for sale of 937.5 million shares or 25.68% of the company. This excludes an over-allotment option that could increase the public shareholding spread to 29.54%. The IPO comprises an offer for sale of 687.5 million shares by existing shareholders – the Lau family and private equity firm Affinity Equity Partners – and the issuance of 250 million new shares at RM1.10 each.
Of the total amount to be raised, RM275mil will go to the company. Leong Hup said RM207.7mil, or 75% of the amount, would be set aside for business expansion. The Philippines is the biggest recipient of the proceeds from the IPO, followed by Vietnam (RM47mil) and Malaysia (RM40.7mil).
Source: https://www.thestar.com.my/business/business-news/2019/05/07/leong-hup-final-retail-price-fixed-at-rm1pt10/#uPzL3Gdts4zceSSf.99
