INVESTMENT: Major Potential IPOS (Initial Public Offering) To Consider In 2014

Definition of 'Initial Public Offering - IPO'

The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.

In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), the best offering price and the time to bring it to market.

Also referred to as a "public offering."
   

Investopedia explains 'Initial Public Offering - IPO'

IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future because there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, which are subject to additional uncertainty regarding their future values. http://www.investopedia.com

1. 1Malaysia Development Berhad

1Malaysia Development Berhad is a strategic development company, wholly owned by the Government of Malaysia. Wikipedia

Potential size: RM10 billion

2. Malakoff Corporation Berhad

Malakoff Corporation Berhad is a Malaysian power company that generates and sells power as an independent power producer to Tenaga Nasional for uploading onto the National Grid, Malaysia.

Potential size: RM3.3 billion

3. Medini Iskandar Malaysia Sdn Bhd

Medini Iskandar Malaysia Sdn Bhd operates as a real estate developer. The company constructs sewage treatment plants, water supply reservoir, suction tank, pump house, and retention pond. Medini Iskandar Malaysia Sdn Bhd is a former name of Rim City Sdn Bhd and changed its name to Medini Iskandar Malaysia Sdn Bhd in October, 2008. The company was incorporated in 2007 and is based in Malaysia. Medini Iskandar Malaysia Sdn Bhd operates as a subsidiary of Iskandar Investment Berhad. http://investing.businessweek.com

Potential size: RM2.5 billion

4. IOI Properties Group Sdn. Bhd.

IOI Properties Group Sdn. Bhd. operates as an investment holding company, with operations in property development and investment, leisure, and hospitality business in Malaysia and Singapore. The Company develops residential, commercial, and industrial properties and invests in shopping malls, office complexes, and other properties. Top 3 developer in Malaysia by market capitalization ; Top 10 developer in Malaysia for 6 consecutive years (2003-2008) (voted by the Edge)

Potential size: RM1.875 billion

5. MOL AccessPortal Sdn Berhad

MOL AccessPortal Sdn Berhad was incorporated in Malaysia under the Companies Act, 1965 on 9 February 2000 as a private limited company under the name of Superior World Sdn Bhd. It assumed its present name on 8 July 2000 and was converted into a public limited company on 29 April 2002. MOL was officially listed on the MESDAQ Market of Bursa Malaysia Securities Berhad under the Technology Sector on 22 December 2003. It was subsequently privatized by Tan Sri Vincent Tan, Chairman & CEO of Berjaya Corporation, one of the largest conglomerates in Malaysia with an annual turnover of USD3.8 billion in February 2008.

MOL is a MSC Malaysia Status Company that develops and operates payment systems. It leverages on a network of over 600,000 physical and virtual payment channels across more than 80 countries worldwide to operate its key payment products. MOL processes over 6,000,000 transactions per month with a volume of more than USD300 Million a year.

MOL is recognized as one of the Asia Pacific’s fastest growing technology companies in the Deloitte Technology Fast 500 Asia Pacific Awards for 2005 & 2006, has won a Merit Award for the Best of E-Commerce Applications in MSC Asia Pacific ICT Awards and is a Microsoft Certified Partner. In 2010, MOL ranked 23rd in the Deloitte Fast 500 Companies of Asia Pacific 2010 becoming South East Asia's fastest growing technology. http://en.wikipedia.org

Potential size: RM1.8 billion

6. Axiata Group Berha's telecommunications tower assets

Axiata Group Berhad is the emerging leader in Asian mobile telecommunications. The Group, one of the largest telecommunications companies in the region, has extensive operations and businesses in ten countries in Asia, providing a comprehensive range of mobile communication services to over 176 million subscribers.

Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India and Singapore. Its mobile subsidiaries and affiliates operate under the brand names ‘Celcom’ in Malaysia, ‘XL’ in Indonesia, ‘Dialog’ in Sri Lanka, ‘Robi’ in Bangladesh, ‘Smart’ in Cambodia, ‘Idea’ in India and ‘M1’ in Singapore.

Potential size: RM1.7 billion

"PETALING JAYA: Axiata Group Bhd’s plan to raise at least US$500 million (RM1.64 billion) by listing its telecommunications tower assets across seven nations came as no surprise to analysts." - freemalaysiatoday - September 3, 2013

7. Iskandar Waterfront Holdings Sdn Bhd

Iskandar Waterfront Holdings Sdn Bhd (IWH) was founded upon thebusiness vision of Tan Sri Lim Kang Hoo,  a long-time veteran of the plantation and construction industry. Tan Sri Lim is also the co-founder and Executive Chairman of Ekovest Berhad and has been on its Board of Directors since 30 March 1988.

IWH is a government-linked company that was specifically incorporated to serve as the master developer of 4,000 acres of prime waterfront land in Johor Bahru. Under a dynamic development Master-plan, a new waterfront city, spreading over almost 2,000 acres, will be developed in phases over a period of 25 years with a GDV of RM60bil. Danga Bay, listed as part of Flagship A within Iskandar Malaysia, this will be one of the largest integrated waterfront urban development projects in Malaysia, with excellent road, air and sea connectivity, and direct Causeway access to Singapore. http://topdevelopers.iproperty.com

Potential size: RM1 billion

8. Ranhill Energy and Resources Bhd.

Ranhill Energy and Resources Bhd. is a Malaysian utility firm involved in energy and water. The company provides engineering services for the onshore and offshore oil and gas, refinery and petrochemical industries as well as power stations in Sabah and a water firm in Johor. Ranhill Energy and Resources Bhd. was incorporated in 2012 and is based in Kuala Lumpur, Malaysia. http://investing.businessweek.com/

Potential size: RM1 billion

"To recap, Ranhill Energy was supposed to list on Bursa Malaysia on July 31, with about 70% of its RM753mil IPO proceeds to be utilised for the repayment of borrowings. The SC instructed Ranhill Energy to postpone its IPO indefinitely on July 25 in view of the non-disclosure issue. On July 26, Ranhill Energy announced that it had terminated its IPO." - http://www.thestar.com.my

9.  Seven Convenience Bhd

Seven Convenience Bhd, a 7-Eleven convenience store chain operator in Malaysia.

 

7-Eleven Malaysia Sdn Bhd operates a chain of convenience stores. Its products and services include slurpee and gulp, fresh food and coffee, and private labels products; and in store services, such as sale of mobile phone reload cards, ink cartridge refills, photocopying, fax, automated teller machine, bulletin boards for neighborhood community notices, Internet games reloads, and IDD/STD reloads. The company sells its products through licensees, franchisees, and affiliates in Malaysia and internationally. 7-Eleven Malaysia Sdn Bhd was formerly known as Convenience Shopping Sdn Bhd and changed its name to 7-Eleven Malaysia Sdn Bhd in October 2007. The company was incorporated in 1984 and is based in Kuala Lumpur, Malaysia. As of June 14, 2010, 7-Eleven Malaysia Sdn Bhd operates as a subsidiary of Berjaya Retail Sdn Bhd. - Newsweek

Potential size: RM750 million

"Securities Commission Malaysia has rejected the operator of Malaysia's largest convenience store chain 7-Eleven's RM700 initial pubic offering (IPO), according to the Edge Financial Daily." - The Malaysian Insider, November 25, 2013

10. Icon Offshore Berhad 

Icon Offshore Berhad (formerly known as Kota Bayu Ekuiti Berhad) combines the unique strengths and capabilities of two reputable offshore support vessel (OSV) companies in the country, Tanjung Kapal Services Sdn Bhd and Omni Petromaritime Sdn Bhd.

Potential size: RM450 million

"KUALA LUMPUR Offshore support vessel (OSV) provider Icon Offshore Bhd aims to raise about RM450mil from its initial public offering (IPO), targeted next year, to fund its fleet expansion programme for the next two years." - The Star, Monday October 14, 2013

11. Boustead Plantations Berhad

Boustead Plantations Berhad provides oil palm and rubber cultivation and processing services. In addition, it offers edible oil bulking, agricultural research, and advisory services. The company was formerly known as Kuala Sidim Berhad and changed its name to Boustead Plantations Berhad in April 2004. The company is based in Kuala Lumpur, Malaysia. Boustead Plantations Berhad operates as a subsidiary of Boustead Holdings Bhd. Businessweeks

Potential size: Awating pricing

"PETALING JAYA: Boustead Holdings Bhd is planning to create another plantation giant by listing its plantation division next year. It is also eyeing to add more plantation land-bank to its portfolio." - The Star, December 6, 2013

Source: The Sun/MIDF Research, news reports

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INVESTMENT: 5 ASEAN Stock To Consider In 2014

ASEAN is an organization of countries in southeast Asia set up to promote cultural, economic and political development in the region. ASEAN was officially formed in 1967 with the signing of the Bangkok Declaration.

The original five members included Indonesia, Malaysia, Philippines, Singapore, and Thailand. Since its formation, ASEAN has been growing slowly, and more countries in the region have gained membership. Through co-operation the goal of the organization is to increase the welfare of the people in the region, both economically and culturally. http://www.investopedia.com

Personal Money, magazine on managing your finances, in January 2014 issue have listed 5 ASEAN stock picks(Value Buy).

1. Semen Indonesia

Semen Indonesia, formerly known as Semen Gresik, is the largest cement producing company in Indonesia with an annual cement producing capacity of 29 million tonnes in 2012. Wikipedia

Cement company PT Semen Indonesia said it needed Rp 6 trillion (US$ 508.9 million) capital expenditure (capex) for expansion in 2014.

Its estimated dividend yield of 2013 is 3.2%.

The company’s president director Dwi Soetjipto said that it had between Rp 4 trillion and Rp 5 trillion.

“The available capex currently does not include expansion plans in Myanmar and Bangladesh. To do that, we need a total of Rp 6 trillion,” Dwi said as quoted by Kontan.co.id.

He added that the company would seek external financing to meet its capex target in 2014. - http://www.thejakartapost.com/

2. Charoen Pokphand Foods

Charoen Pokphand Foods Public Company Limited is Thailand's largest agribusiness firm. It is a publicly traded subsidiary of the Charoen Pokphand Group. Wikipedia

The company plans to invest 50 billion baht ($1.6 billion) during 2014-2016 to expand the capacity of its feed, farm and food businesses.

Its estimated dividend yield of 2013 is 1.2%.

3.  PTT Global Chemical

PTT Global Chemical Public Company Limited is a Thailand-based integrated petrochemical and refining company with a total olefins and aromatics production capacity of 8.2 million tons per year and petroleum production capacity of 280,000 barrels per day. The Company is emerged from the amalgamation of PTT Chemical Public Company Limited and PTT Aromatics and Refining Public Company Limited. As of June 30, 2011, the Company had 13 subsidiaries including Bangkok Polyethylene Plc., Bio Creation Co., Ltd., TOC Glycol Co., Ltd., Thai Ethanolamines Co., Ltd., Thai Oleochemicals Co., Ltd., PTT Polyethylene Co., Ltd., NPC Safety and Environmental Service Co., Ltd., PTT Chemical International Pte. Ltd., Bio Spectrum Co., Ltd., PTT Maintenance and Engineering Co., Ltd., Thai Tank Terminal Limited, PTT Phenol Co., Ltd. and PTT Utility Co., Ltd. On May 31, 2012, the Company acquired 51% shares of Perstorp Holding France SAS and renamed it to VENCOREX Holding.  http://www.forbes.com

Its estimated dividend yield of 2013 is 4.3%.

4. Oversea-Chinese Banking Corp (OCBC)

The Oversea-Chinese Banking Corporation Limited (SGX: O39, OTC Pink: OVCHY) , is a publicly listed financial services organisation with its head office in Singapore. OCBC Bank has assets of more than 224 billion SGD. As of November 2010, the bank is the largest local bank in Singapore by market capitalisation. However, it is the smallest local bank in Singapore by global presence. Based on Bloomberg, in 2011 OCBC is the number one of World's 10 strongest $100 billion assets banks.

The bank's global network has grown to comprise more than 530 branches with representative offices in 15 countries and territories, including Singapore, Malaysia, Indonesia and a few small branches in China, Hong Kong SAR, Japan, Australia, UK and USA. The branches include the 411 branches and offices in Indonesia operated by its subsidiary, Bank OCBC NISP. wikipedia

Its estimated dividend yield of 2013 is 3.2%.

Oversea-Chinese Banking Corp. (OCBC), Southeast Asia’s second-biggest lender, made a binding bid for Hong Kong’s family-run Wing Hang Bank Ltd. (302), two people with knowledge of the matter said.

Singapore-based OCBC conducted due diligence and offered less than the two times book value Wing Hang was seeking, said the people, who asked not to be identified as the information is private. The companies are discussing if they can bridge the valuation gap, the people said. The Hong Kong bank has a market value of $4.6 billion, which is 1.7 times its estimated 2013 book value, data compiled by Bloomberg show. businessweek: Jan 03, 2014

 5. NOBLE GROUP

Noble Group Limited manages a portfolio of global supply chains covering a range of agricultural and energy products, as well as metals, minerals and ores. Wikipedia

As of Dec 28, 2013, the consensus forecast amongst 24 polled investment analysts covering Noble Group Limited advises investors to hold their position in the company. This has been the consensus forecast since the sentiment of investment analysts deteriorated on May 15, 2013. The previous consensus forecast advised that Noble Group Limited would outperform the market. ft.com

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10 Books to Improve Investment Knowledge

 1. The Intelligent Investor, The Definitive Book On Value Investing, Revised Edition

• Book by Benjamin Graham, Jason Zweig and Warren Buffett
• Originally written by famed value investor Benjamin Graham in the 1930s, it was updated in 2003 and 2009 by Zweig and Buffett. The revised edition now includes more up to date examples on stock investing techniques.

2. One Up On Wall Street: How to use what you already know to make money in the market.

• Book by Peter Lynch
• Peter Lynch is the former manager of Fidelity's Magellan mutual fund who rose to fame in the bull market rally of the 1980s. In the 1980s and 1990s he was one of the best known mutual fund managers in America but has since faded from view as hedge fund managers became the new golden boys. One Up On Wall Street was his first book. The original edition came out in 1989 but the second edition was revised for the dot-com boom in 2000.

3. The Essays of Warren Buffett: Lessons for Corporate America, Second Edition

• Book by Warren Buffett and Lawrence Cunningham.
• This book contains Buffett's letters to Berkshire Hathaway shareholders over the last several decades through 2008. The letters are filled with more than just updates about the company as Buffett also shares investing tidbits and insight into his investing philosophy.

4. The Future for Investors: Why the Tried and the True Triumph Over the Bold and the New.

• Book by Jeremy Siegel
• Published in 2005, the book shatters the myth that investors have to be in the latest 'in' growth stock or hot IPO to be successful investors. For instance, he compares the historical returns of Exxon and IBM. IBM was the Microsoft or Apple of its time in the 1940s and 1950s. Exxon was the boring big oil company. Even though IBM was growing earnings at a faster pace, Exxon had a lower P/E and paid a larger dividend. Readers might be surprised at which company was the better long term investment. Siegel explains why dividends matter for long term investors and how a company that makes candy triumphed over all of those with the latest hot product.

5. Rule #1: The Simple Strategy For Successful Investing in Only 15 Minutes a Week!

• Book by Phil Town
• This book helpful for novice investors because it lays out an investing plan. Town's strategy is to find and invest in wonderful businesses, including those with moats and other margins of safety. It incorporates both value investing principals espoused by Graham and Buffett with some technical analysis.

6. The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich

• Book by David Bach.
• This book starts with the powerful story of an average American
  couple--he’s a low-level manager, she’s a beautician--whose joint income never exceeds $55,000 a year, yet who somehow manage to own two homes debt-free, put two kids through college, and retire at 55 with more than $1 million in savings. Through their story you’ll learn the surprising fact that you cannot get rich with a budget! You have to have a plan to pay yourself first that is totally automatic, a plan that will automatically secure your future and pay for your present.

7. The Only Investment Guide You’ll Ever Need

• Book by Andrew Tobias
• Andrew Tobias is an entertaining writer. His jocular, conversational tone will keep you interested as he describes mutual funds, bonds, and treasury bills. There’s a good section on how to handle a windfall (lottery, inheritance). This is an excellent introduction to the subject of investing.

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8. The Bogleheads’ Guide to Investing.

• Book by Larimore, Lindauer, and LeBoeuf. 
• You want expert investment advice? You can’t beat the info found here. These devotees of Vanugard founder John Bogle are big on slow, sure investments like indexed mutual funds. They tap their decades of experience to teach about diversification, inflation, and asset allocation. It’s not nearly as boring as it sounds.

9. Yes, You Can…Achieve Financial Independence.

• Book by James Stowers
• Despite the odd title, this is a solid book on investment from one of the richest men in America. It does cover some basic personal finance information, but mostly gives tips on how to invest.

10. The Four Pillars of Investing

• By William J. Bernstein
• William Bernstein is something of a renaissance man—he is a neurologist, the founder of an investment advisory firm, a financial theorist, an author of investment books, and an author of books about economic history. In The Four Pillars of Investing, Bernstein presents a common-sense strategy for building a portfolio that will position investors for success.

Is it enough?

 “People who say they don't have time to read simply don't want to.”
― Julie Rugg, A Book Addict's Treasury

 See also:

• Are you impulse spender?
• Please avoid these investing mistakes
• Books to improve financial knowledge
• Tony Fernandes
• Rule of 78: How many years your investment will become double