🇲🇾 BWYS IPO is highly regarded by an investment bank. Is there any interest in it?

BWYS Group's IPO is valued by an investment bank and the target price is 50% or more. Is there any interest?

Today we are introducing BWYS GROUP BERHAD's IPO, created by M&A Securities. The application period starts on June 18, and the deadline is July 5. The lottery date is set for July 11, and the listing bell date is July 22. The company's IPO stock price was RM0.22, and the market capitalization reached 225M.

BWYS is mainly engaged in manufacturing, and its products include roof tiles, industrial shelving systems and welded pipes. In addition, the company also operates scaffolding supply and leasing and steel trading businesses. The business is mainly focused on metal products (about 70%) and scaffolding (about 20%).

The main allocation of 56M capital that the company plans to raise for the IPO is: new plant construction (22.8M), new equipment purchase (7.7M), software upgrade (10.8M), bank loan repayment (4M), and daily operating capital and listing expenses (total 11M).

Financially, the company doubled its performance from 2020 to 2021, but growth slowed from 2021 to 2023, mainly due to rising costs affecting profit margins.

BWYS's customers are widely distributed. The top 5 customers are mainly concentrated in Malaysia, and they do not rely too much on a few large customers. It is worth noting that most of the company's raw materials come from hot-rolled and cold-rolled steel from China.

For more details on the BWYS IPO, please watch our video explanation:

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