MY Morning Wrap | Deloitte: Malaysia's IPOs Continue to Raise Funds, Attract Investors

The $S&P 500 Index(.SPX.US)$ gained less than 0.1%. The $Dow Jones Industrial Average(.DJI.US)$ added 0.2%, or roughly 50 points. The $Nasdaq Composite Index(.IXIC.US)$ rose 0.1%.

$IHH(5225)$: IHH Healthcare Bhd announced that it will acquire the entire equity interest in Bedrock Healthcare Sdn Bhd (BHSB) for a cash consideration of RM245 million. IHH via its indirect wholly-owned subsidiary Pantai Holdings Sdn Bhd has entered into a share purchase agreement (SPA) with Saravita Holdings Sdn Bhd and nine individual founders for the entire equity interest in Bedrock Healthcare. BHSB, via its wholly-owned subsidiaries, owns the key asset Timberland Medical Centre (TMC) in Kuching, Sarawak and has earmarked vacant land in central Kuching for the construction of a new 200-bed tertiary hospital. The acquisition is expected to be completed by the first half of 2024, subject to regulatory approvals and satisfaction of conditions precedent in accordance with the SPA. Upon completion, BHSB and its subsidiaries will be consolidated as subsidiaries of IHH.

$PENTA(7160)$: Semiconductor group Pentamaster Corporation Bhd's net profit rose 23.2% to RM23.65 million in the second quarter ended June 30,2023 from RM19.2 million a year ago, on the back of higher revenue and better product mix. Quarterly revenue increased 16.9% to RM176.88 million from RM151.34 million, mainly contributed by the automated test equipment and factory automation solutions segments.

$RAPID(7765)$: Rapid Synergy Bhd's wholly-owned subsidiary Persiaran Eksklusif Sdn Bhd (PESB) is disposing of two pieces of land to Dunnes Sdn Bhd for RM16 million cash, which will be utilised mostly for working capital and the redemption of a loan. In a filing with Bursa on Thursday (Aug 10), the company announced that PESB has entered into a sale and purchase agreement (SPA) with Dunnes for a piece of freehold land located in Sitiawan, Perak measuring 5,493 square metres, including a 1½-storey supermarket building. Additionally, PESB has also disposed of a vacant piece of freehold commercial land measuring approximately 4,840 sq m for use as a car park.

$GCB(5102)$：MARC Ratings affirmed its rating of AA-IS on Guan Chong Bhd's (GCB) Sukuk Wakalah Programme of up to RM800 million with a stable outlook. The outstanding amount under the programme currently stands at RM600 million. In a press release on Thursday (Aug 10), MARC said that GCB’s market position in the midstream cocoa supply chain — the largest cocoa grinder in Asia and fourth in the world — and its strong operational track record remain key rating drivers. Meanwhile, key factors moderating the rating are the volatility of cocoa prices which may diminish margins, along with the group’s moderate-to-high leverage position.

$NCT(0056)$: NCT Alliance Bhd (formerly Grand-Flo Bhd) is undertaking another private placement exercise of about 10% of its share base to raise some RM54.42 million, based on an illustrative price of 37 sen, mainly to fund its property development of the Grand Ion Majestic and Ion Vivace projects. Based on the illustrative gross proceeds, the company said almost all of it or RM53.9 million, will be allocated for investment opportunities to expand the group’s property development activities. It said some RM50 million and RM3.9 million would be earmarked for its mixed development project Grand Ion Majestic in Pahang and Ion Vivace in Batu Kawan, Penang, respectively.

$SCGBHD(0225)$: Southern Cable Group Bhd has received an extension of contract from Tenaga Nasional Bhd (TNB) worth RM332.1 million to supply underground power cables to the utility giant. The group secured the one-year extension until July 2024 through its wholly-owned subsidiary Southern Cable Sdn Bhd. The subsidiary was awarded the original one-year contract, valued at RM294 million, in July 2022.

$ADVCON(5281)$: Advancecon Holdings Bhd’s associate has bagged a RM45.48 million award as the contractor for the proposed construction and completion of earthworks and other related works, in relation to the Miri combined cycle gas turbine power plant project. Advancecon said its 30%-owned associate company Advancecon (Sarawak) Sdn Bhd (ASSB) had accepted the letter of award (LOA) from Petros Power Sendirian Bhd for the project. The contract period is 12 months from the date of the LOA. The group intends to fund the contract via internally-generated funds and/or external borrowings.

$MHC(5026)$: MHC Plantations Bhd's net profit fell 73.75% to RM4.28 million in the second quarter ended June 30, 2023 (2QFY2023) from RM16.31 million a year ago, due to falling selling prices of oil palm products. The group said the average selling prices (ASP) of crude palm oil (CPO) fell 43% year-on-year while that of palm kernel (PK) dropped 46% in the same period. At the same time, the selling prices of fresh fruit bunches (FFB) declined 48% and empty fruit bunch oil was down by 39%, its bourse filing showed, though sales volume for FFB rose 9% while CPO climbed 6% and PK went up 19%.

$TECHBASE(8966)$: Prolexus Bhd intends to raise up to RM102.58 million — about 92% of its market capitalisation of RM111 million — through a renounceable rights issue of irredeemable convertible unsecured loan stocks (ICULS) to trim its bank borrowings and to fund its working capital. The apparel maker said the renounceable rights issue entails the issuance of up to RM102.58 million nominal value of 2.05 billion ICULS at its full nominal value of 5 sen each, on the basis of five ICULS for each existing Prolexus share, on an entitlement date to be determined. The conversion price of the five-year ICULS is also yet to be fixed. Besides repaying bank borrowings, for which it is allocating up to RM42.6 million and to fund its working capital (up to RM34.18 million), Prolexus plans to use as much as RM15 million to acquire businesses that complement its existing one and RM10 million for the installation of rooftop solar photovoltaic systems.

$SENTRAL(5123)$: Sentral REIT's net property income for the second quarter ended June 30, 2023 grew 4.55% to RM29.21 million from RM27.94 million a year earlier. Quarterly revenue was up by 4.59% to RM38.19 million from RM36.51 million a year earlier, driven by higher revenue generated from Menara Shell and Platinum Sentral, partially offset by the decrease in revenue from Wisma Technip and QB2. The real estate investment trust declared an interim income distribution of 3.19 sen per unit, which will be paid on Sept 18, translating into a yield of 7.83% based on the group's closing price of 81.5 sen on June 30, 2023.