IPO Series - Steel Hawk Berhad - Onshore & Offshore Support Service Company

Timetable of IPO

Figure 1: IPO timetable of STEEL HAWK
-Will be listed on the ACE Board

Info of IPO
Enlarged no. of shares upon listing: 490 million
IPO price: RM0.15
Market capitalization: RM73.50 million
Estimated funds to raise from Public Issue:  RM13.50 million
PE ratio = 10.18x (based on FY2023)

Business Model

Figure 2: Business model of STEEL HAWK
Source: STEEL HAWK IPO prospectus

Utilisation of Proceeds

Figure 3: Utilisation of proceeds of STEEL HAWK
Source: STEEL HAWK IPO prospectus

Dividend Policy
-The group recommends distributing minimum dividends of 30% of their annual PAT

Major Customers and Major Suppliers

Figure 5: Major customers and suppliers of STEEL HAWK in FPE2024
Source: STEEL HAWK IPO prospectus

Financial Summary

Figure 6: Profit & Loss statement of STEEL HAWK

Figure 7: Financial position of STEEL HAWK

Financial overview, industry market, and personal opinion
-Based on the revenue, it has increased from RM24.845million to RM72.537million between FYE2021 and FYE2023, or a CAGR of 70.86%. However, its PAT margin didn’t follow the increment rate as depicted in the revenue, which grew from only 8.37% to 9.95% within the same timeline.
-Compared with the selected and stated industry players like Carimin, Uzma, Dialog, etc., albeit it is not the highest PAT margin, the group had maintained almost 10% of PAT in FYE2023, recording 9.95%.
-The group is closely tied to the PETRONAS Group in terms of their business activity which is one of the risk factors as stated in its IPO prospectus. Hence, the future stock price might be closely following the stock price of PETRONAS.

Figure 8: Financial information of Steel Hawk Group and Selected Industry Players

By: Jshen Ng