GO ING PUB LIC INTRODUCTION
GO ING PUB LIC REASONS FOR LISTING
GOING P UBLI C
DIFFERENCES BETWEEN PUBLIC AND PRIVATE EQUITY MARKET
PRIVATE EQUITY
PUBLIC EQUITY
Investors undertake own research and analysis of the company
Investors are free to sell shares at any time, many are short-term speculators
Investors will generally hold shares until the company sold, or attains public listing
Investors are allowed access to information that the company is required, or chooses, to make publicly available
Close relationship between company and investors
The relationship with the investors will be more distant, since the company will have a wide range of investors, each having a small stake
GOING P UBLI C
DIFFERENCES BETWEEN PUBLIC AND PRIVATE EQUITY MARKET
PRIVATE EQUITY
PUBLIC EQUITY
Investors usually represented on company’s board
Companies will have independent directors responsible for looking after the interest of shareholders
Private company boards are able to restrict transfers of existing shares, and thus have greater control over the share holder base
The company’s board will have no power to prevent anybody from buying its share.
Directly negotiated transaction between investors and the company
Shares are bought and sold via an established stock exchange
Eg. Private Equity : EON Service Sdn Bhd. Public Equity : TM International Berhad
GO ING PUB LIC
MAIN BOARD & SECOND BOARD VS MESDAQ MARKET Rules and regulation for major points on Bursa Malaysia Securities Berhad
No 1
ISSUE Types of issuers
MESDAQ MARKET Incorporated in Malaysia i. technology companies – Companies with technologybased business activities, involved in design, development and manufacturing in 12 area prescribed by SC ii. Non-technology companies – companies with high growth business activities that are suitable for listing on the MESDAQ Market iii. Technology Incubators
MAIN & SECOND BOARD Companies incorporated in Malaysia and eligible foreign corporation under SC’s Policies and Guidelines on Issue / Offer of Securities
GO ING PUB LIC
MAIN BOARD & SECOND BOARD VS MESDAQ MARKET No
MAIN & SECOND BOARD
ISSUE
MESDAQ MARKET
2
Issued and paidup capital
Min RM 2 million for tech / non tech company. Min RM 20 mil for technology Incubators.
i. Main board min RM 60 mil ii. Second board min RM 40 mil
3
Operating history
3 full financial years
At least 5 full financial years
4
Profit requirements
No specific profit record is required
Uninterrupted profit record of 3 to 5 full financial years, with an aggregate after –tax profit of not less than RM 30 mil ( main board ) or RM 12 mil ( 2nd Board )
5
Board lots
Traded in board lots of 100 shares
Traded in board lots of 100 shares
6
Par value
At least RM0.10 per share
At least RM0.10 per share
7
Total number of shares issued under ESOS
Shall not exceed 30% of the issued capital of the company at any one time
Shall not exceed 15%
ESOS = employee share option scheme
GO ING PUB LIC
ADVANTAGES & DISADVANTAGES
GOING P UBLI C
REASONS FOR SC REJECTION OF IPO APPLICATION ON BURSA MALAYSIA
GO ING PUB LIC
THE UNDERWRITING PROCESS
GO ING PUB LIC
THE APPROVAL PROCESSES OF IPOs in MALAYSIA
GO ING PUB LIC
THE APPROVAL PROCESSES OF IPOs in MALAYSIA
Process Name
Main Activity
Adviser consults SC on IPO application
Advisers are encouraged to have presubmission consultation to discuss potential issues pertaining to the IPO application. Advisers may consult the SC on matters such as new products, practical / implementations issues and regulatory issues
Timeline
GO ING PUB LIC
THE APPROVAL PROCESSES OF IPOs in MALAYSIA
Process Name
Main Activity
Timeline
Adviser makes IPO application to the SC
SC expects a full complete submission from the Adviser in order for SC to meet its timeline charter of 21 working days ( market capitalization ≥ RM500 mil upon listing ) and 60 working days (market capitalization ≤ RM 500 mil upon listing ) for consideration of the IPO application.
Ts ,
Incomplete submission may cause delays of the application or even cause the submission to be returned. Adviser also submits to MITI
Day of submissio n of IPO application
GO ING PUB LIC
THE APPROVAL PROCESSES OF IPOs in MALAYSIA
Process Name
Main Activity
Timeline
SC evaluates the IPO application
SC evaluates the IPO application based on the following broad areas :-
Ts + 18 ( > 500 )
Viability of the proposal Ts + 57 ( < 500 -SC conduct site visits to better ) understand the business of the applicant -Clarification meeting with the Advisor / Applicant may be held to discuss major issues -Corporate governance records checks are made on the Applicant and its subsidiaries, promoters, directors and shareholder
GO ING PUB LIC
THE APPROVAL PROCESSES OF IPOs in MALAYSIA
Process Name
Main Activity
Timeline
SC evaluates the IPO application
Property asset valuation -Review is made to ensure compliance with SC’s Guidelines on Assets Valuation. -If valuation not acceptable, SC may request for 2nd valuation. Compliance with the NDP requirements -To assess compliance with the FIC’s Guidelines on the Acquisitions of Interests, Merger and Takeovers by Local and Foreign Interests on Bumiputera equity participation
Ts + 18 ( > 500 ) Ts + 57 ( < 500 )
GO ING PUB LIC
THE APPROVAL PROCESSES OF IPOs in MALAYSIA
Process Name
Main Activity
SC makes In arriving at the decision decision on -Relevant departments within SC IPO provide inputs in relation to application compliance with the relevant regulations and guidelines. -A recommendation committee, comprising senior management staff from different departments within SC convenes for a challenge process to ensure thoroughness and consistency in the recommendation of the application.
Timeline Ts + 18 ( > 500 ) Ts + 57 ( < 500 )
GO ING PUB LIC
THE APPROVAL PROCESSES OF IPOs in MALAYSIA
Process Name
Main Activity
Timeline
SC informs adviser of SC’s decision
-SC issues decision letter to the adviser -The adviser/Applicant has 6 months from the date of SC’s decision letter to implement the listing proposal of the applicant - In case of rejection, SC will conduct a post-decision meeting with adviser/applicant. -The adviser/applicant has one month from the date of SC’s decision letter to make an appeal on the rejection
Ts + 21 ( > 500 ) Ts + 60 ( < 500 )
GO ING PUB LIC
THE APPROVAL PROCESSES OF IPOs in MALAYSIA
Process Name
Main Activity
Timeline
Adviser submits registrable IPO prospectus
-SC expects that IPO prospectus contains information that are not false or misleading and the prospectus is sufficient for investors to make informed decision. -Commence exposure of prospectus for 5 market days.
Tp
SC registers the IPO prospectus
-SC reviews the registrable IPO prospectus before registering the prospectus -Once registered, the adviser/applicant is required to lodge the prospectus with CCM ( Company Commission of Malaysia )
Tp + 14
Tp = Day of submission of registrable IPO prospectus.
GO ING PUB LIC
THE APPROVAL PROCESSES OF IPOs in MALAYSIA
Process Name
Main Activity
Timeline
Listing by Bursa
-Listing of the securities by bursa takes Tp + 27 place in 13 market days ( minimum ) from the issuance of the prospectus -Relevant SC departments perform post-approval follow-up on the terms and conditions of approval and postvetting on the prospectus
GO ING PUB LIC PROSPECTUS
GO ING PUB LIC PROSPECTUS
GO ING PUB LIC PROSPECTUS
GO ING PUB LIC PROSPECTUS
GO ING PUB LIC PROSPECTUS
GO ING PUB LIC PROSPECTUS
GO ING PUB LIC PROSPECTUS
GO ING PUB LIC PROSPECTUS
GO ING PUB LIC
IPOs MANAGED BY MALAYSIAN ISSUING HOUSE
GOING P UBLI C
TM INTERNATIONAL BERHAD : KEY INFORMATION SUMMARY
Operating company
Market
Equity Percentage of interest held contribution to by TMI ( % ) operation revenues as of Dec 31,2007 ( % )
Celcom
Malaysia
100.0
50.8
XL
Indonesia
83.8
29.8
Dialog
Sri Lanka
84.8
10.6
TMIB
Bangladesh 70.0
7.2
TMIC
Cambodia
100.0
1.4
Others
-
-
0.2
GOING P UBLI C
TM INTERNATIONAL BERHAD : KEY INFORMATION SUMMARY
GO ING PUBLIC
TM INTERNATIONAL BERHAD : BUSINESS INFORMATION
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 2005
2006
2007
RM mil
RM mil
RM mil
1606.4
4050.3
4953.9
Depreciation & amortization (231.3)
(820.3)
(928.6)
Other operating costs
(2080.1)
(3201.8)
(1165.5) (2900.4)
(4130.4)
Other operating income
263.0
103.3
252.1
Operating profit before finance cost ( A )
703.9
1253.2
1075.6
Operating revenue Operating Cost :
(934.2)
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 2005
2006
2007
RM mil
RM mil
RM mil
Finance income
31.3
50.2
33.4
Finance cost
( 29.9 )
( 202.0 )
( 455.8 )
Net financial income/(cost) ( B )
1.4
(151.8 )
( 422.4 )
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 2005
2006
2007
RM mil
RM mil
RM mil
Share of results (net of tax) -
( 27.4 )
133.3
Gain on dilution of equity
-
-
71.3
Total jointly-controlled entities ( C )
0
( 27.4 )
133.3
Share of results (net of tax) 18.3
28.5
24.2
Gain on dilution / disposal
84.5
-
-
Total associates ( D )
102.8
28.5
24.2
Jointly-controlled entities
Associates
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 2005
2006
2007
RM mil
RM mil
RM mil
Profit before tax A+B+C+D
808.1
1102.5
882.0
Taxation
( 99. 5 )
( 281.7 )
( 134.4 )
Profit after tax
708.6
820.8
727.6
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 2005
2006
2007
RM mil
RM mil
RM mil
Equity holders of our company
636.3
629.3
683.5
Minority interests
72.3
191.5
64.1
Profit for the year
708.6
820.8
747.6
Attributable to :
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 2005
2006
2007
RM mil
RM mil
RM mil
Basic earning per share ( sen )
1783
1763
1915
Adjusted ABITDA
956.4
1942.7
2122.5
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 2005
2006
2007
RM mil
RM mil
RM mil
Basic earning per share ( sen )
1783
1763
1915
Adjusted ABITDA
956.4
1942.7
2122.5
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 NON – CURRENT ASSETS
2005
2006
2007
RM mil
RM mil
RM mil
Intangible asset
2797.5
3165.1
3387.2
Property & equipment
4361.3
6456.2
8398.8
Prepaid lease payments
-
-
297
Jointly-controlled entities
-
632.2
877.5
Associates
50.1
222.3
245.7
Long term receivables
0.3
0.3
0.4
Long term investments
31.8
-
-
Deferred tax assets
216.2
188.6
162.9
7457.2
10664.7
13369.5
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 CURRENT ASSETS
2005
2006
2007
RM mil
RM mil
RM mil
35.3
43.4
59.3
Trade and other receivables 470.6
625.0
698.9
Amount due from holding company
1622.1
2.9
5.9
Amount due from related companies
7.2
6.2
9.9
Tax recoverable
-
-
0.4
Cash and bank balances
933.7
539.5
679.7
3068.9
1217.0
1454.1
Inventories
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 CURRENT LIABILITIES
2005
2006
2007
RM mil
RM mil
RM mil
Trade and other payables
1056.7
1548.1
1981.1
Borrowings
748.0
500.6
1709.7
Amount due to holding company
13.5
-
-
Amount due to related companies
-
-
2.2
Current tax liabilities
10.3
21.0
21.9
1828.5
2069.7
3714.9
(852.7)
(2260.8)
9812.0
11108.7
Net current asset(liabilities) 1240.4 8697.6
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 CASH FLOW FROM OPERATING ACTIVITIES
2005
2006
2007
RM mil
RM mil
RM mil
Receipts from customers
1561.2
4111.8
4862.1
Payments to suppliers and employees
( 650.7 )
( 1945.9 )
( 2253.8 )
Payment for finance cost
( 29.9 )
( 202.0 )
( 411.0 )
Payment of income taxes
( 2.6 )
( 4.1 )
( 10.6 )
Tax refund
0.6
-
-
Total cash flow from operating activities ( A )
878.6
1959.8
2186.7
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 CASH FLOW USED IN INVESTING ACTIVITIES
2005
2006
2007
RM mil
RM mil
RM mil
Disposal of property & plant
2.7
2.8
4.0
Purchase of property& plant
(1480.9)
(3074.4)
4266.5 )
Payment of intangible asset ( telec. & license )
-
(184.5)
-
Disposal of long term invest.
185.2
-
-
Disposal of subsidiaries
(2750.6)
(36.7)
-
Partial disposal of a sub.
2.1
3.5
280.4
Others
28
(1009.3)
(360.7)
Total cash flows used in investing activities ( B )
(4013.9)
(4142.8)
(4343.4)
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 CASH FLOW FROM FINANCING ACTIVITIES
2005
2006
2007
RM mil
RM mil
RM mil
Proceeds from rights / ESOS share issuance
140.9
15.1
76.0
Proceeds from borrowings
774.4
2222.7
2602.2
Repayment of borrowings
(71.2)
(1145.6)
(846.3)
Dividends paid to minority interests
(10.5)
(22.5)
(27.7)
Net advance from holding company
2838.9
762.4
465.5
Total cash flows from financing activities ( C )
3672.5
1832.1
2269.7
GOING P UBLI C
TM INTERNATIONAL BERHAD : PROFORMA & HISTORICAL FINANCIAL INFORMATION
For the year ended Dec 31 CASH AT END OF THE FINANCIAL YEAR
2005
2006
2007
RM mil
RM mil
RM mil
Net increase / ( decrease ) in cash and cash equivalents (A+B+C)
537.2
(350.9)
113.0
Effect of exchange rate charges ( 14.8 )
( 43.2 )
( 39.3 )
Cash and cash equivalents at beginning of the financial year
339.5
921.9
527.8
Cash and cash equivalents at end of the financial year
921.9
527.8
601.5
GOING P UBLI C
TM INTERNATIONAL BERHAD : SHAREHOLDER, DIRECTORS AND MANAGEMENT
GO ING PUB LIC
TM INTERNATIONAL BERHAD : RISK FACTORS
GO ING PUB LIC
TM INTERNATIONAL BERHAD : RISK FACTORS
GO ING PUB LIC
TM INTERNATIONAL BERHAD : RISK FACTORS