Tuesday 21 June 2011

Oldtown debut on 11 July

PETALING JAYA: In an updated prospectus draft, Oldtown Bhd is pricing its issue/offer price at RM1.25 per share for its initial public offering (IPO) of 96.4 million shares of RM1 each, instead of offering 59.5 million shares as stated in its first draft posted in February.

The company, which owns and operates the Oldtown White Coffee chain, aims to list on Bursa Malaysia's Main Market on July 11.

According to its prospectus draft, the company is offering 63.4 million new ordinary shares for application by the Malaysian public, directors, eligible employees and business associates of Oldtown and its subsidiaries.

The new shares are also offered to identified investors and bumiputra institutions and investors approved by the International Trade and Industry Ministry. It has an offer for sale of 33 million ordinary shares by way of private placement to identified investors.

The IPO price is based on the historical price earnings ratio multiple for the financial year ended Dec 31, 2010 (FY10) of 13 times which is based on the historical net earnings per share of 9.6 sen and enlarged issued and paid-up share capital of 330 million shares upon listing.

AmInvestment Bank Bhd is its IPO principal adviser, managing underwriter, joint underwriter and joint placement agent. Meanwhile, CIMB Investment Bank Bhd is its joint underwriter and joint placement agent.

Oldtown said the listing exercise would enable the group to gain recognition and enhance its profile through listing status and further augment Oldtown's corporate reputation and assist the group in expanding its customer base locally and overseas.

“It will also provide funds for expansion of Oldtown's business and markets, as such increasing the overall capability of the Oldtown group,” it added.

According to its proforma consolidated statements, Oldtown registered a net profit of RM31.9mil with revenue of RM255.1mil for the financial year ended Dec 31, 2010.

The company plans to raise RM79.2mil gross proceed from its IPO, of which it will utilise RM38.1mil for capital expenditure, RM10.5mil for working capital and RM5.9mil for repayment of bank borrowings.

The company's market capitalisation upon listing amounts to RM412.5mil, based on the IPO price and the enlarged issued and paid-up share capital of 330 million shares


  1. didi, u put this as a draft since 3 days ago, I help u to publish it ok? Thanks for sharing.

    Oldtown at least has revenue growth and profit, but may be IPO at wrong time as current confidence on IPO is low. Lets see how does the next one fare.

  2. haha, thx...got no time to do research and writing...
    but i'm quite skeptical on this stock....won't apply for it...u applying??

  3. So far i only attempted to apply IPO once - Tambun, but not successful. But manage to buy it later near IPO price :)

    Not keen to apply any IPO now, mainly no fund and market sentiment on IPO remain cautious.

    Bcoz everyone knows Oldtown and is very familiar and close to it, I think the response will be good.