Highlights

Alpha Return Hedge

Author: sayalabur   |   Latest post: Tue, 29 Sep 2020, 8:15 PM

 

Ekovest - Bandar Malaysia boost market value by RM4.5 billion or RM1.70/share

Author:   |    Publish date:


According to Tan Sri Lim Kang Hoo, Ekovest is expected to pay RM1.5bn for the proposed 40% acquisition in IWH-CREC Sdn Bhd (IWH).  Then with the appointment of CIMB and the international tranche to Chinese investors via ICBC, Bank of China and Citic, he plans to list IWH in the 1st half of 2021 to raise at least RM5bn (source: The Star).

Now the calculation. For IPO, usually 30% is raised from IPO proceeds (estimated at RM5bn) and this means IWH is worth RM15bn. 

Hence, Ekovest's 40% stake in IWH will be valued at RM6bn (40% of RM15bn). That's why no problems for Ekovest to raise financing to buy initial 40% stake in IWH as Ekovest will secure the financing (back to back arrangement) from CIMB, ICBC, Bank of China and Citic.

The 40% stake of RM6bn - cost of purchase of RM1.5bn translates to an increase in Ekovest's market value to RM4.5bn or RM1.70 per share in Ekovest.

The bottom line is Ekovest is a screaming buy at current levels and don't let anyone tell you otherwise as the numbers don't lie.

Share this

  Be the first to like this.
 
Orlando Tis is wrong

40% in IWH not IWH-CERC



According to Tan Sri Lim Kang Hoo, Ekovest is expected to pay RM1.5bn for the proposed 40% acquisition in IWH-CREC Sdn Bhd (IWH).
16/09/2020 3:31 PM
Justicar lol. all sysndicates are working dy
what happens if got rights ar? then wont be 1.70 per share dy lo
16/09/2020 3:33 PM
Justicar u really think banks are gonna lend 1.5bil to ekovest wothout anything in return ar...no rights? no pp? no way lo
16/09/2020 3:34 PM
Justicar i suspect enlarge number of shares ..at least up to 4bil. n some borrowings.
16/09/2020 3:35 PM
Fong Kh Still early to tell maybe after this hype the price will go back as square
16/09/2020 3:35 PM
ttgipoh simply talk and unqualified calculations
16/09/2020 3:39 PM
sayalabur Orlando pls spend time to read old research to know that the listing vehicle to be IWH-CREC (IWH) because IWH & MOF own 60:40 of Bandar Malaysia. Do read and understand company structure before commenting
16/09/2020 3:47 PM
sayalabur PrimarisMarine Please check with your investment banking buddies to understand back to back deals. That’s why the brokers to help with the listing already identified.
16/09/2020 3:49 PM
sayalabur Ttgipoh perhaps you should educate us how calculations are done instead of ‘simply talk”. Ask any investment banker or corporate finance people who actually assist in listings of IPOs, they will also tell u this is how valuations are done
16/09/2020 3:52 PM
Chrisfoo So better don't buy in this share next week??the syndicate wanted to goreng right??
16/09/2020 4:25 PM
Orlando Orlando Tis is wrong

40% in IWH not IWH-CERC



According to Tan Sri Lim Kang Hoo, Ekovest is expected to pay RM1.5bn for the proposed 40% acquisition in IWH-CREC Sdn Bhd (IWH).

16/09/2020 3:31 PM
16/09/2020 5:09 PM
freddiehero good news ka?
16/09/2020 5:13 PM
sayalabur Orlando tis sad when all you need to clarify your CONFUSION is to click on bursa website for company announcement and Google the corporate structure written by various news reports in the past. I understand for some people to comprehend cross holdings at various subsidiaries can be confusing. When confused, don’t be lazy to maybe Ask a friend for help to explain the complex holdings. Sorry am not here to give tutoring
16/09/2020 6:50 PM
Orlando Saya

I say d samr to u

Don't b lazy chk it out
16/09/2020 7:52 PM
Orlando Chk it out
16/09/2020 7:55 PM
Orlando Hint to u saya

Does IWH-CREC has 4000 acres of lands in Johor?
16/09/2020 7:56 PM
Orlando Oso based on likely IPO pricing IWH is valued at 20b not 15b
16/09/2020 7:58 PM
Fong Kh Crazy 1.5b for 40% shares.
16/09/2020 8:13 PM
i3lurker https://www.theedgemarkets.com/article/turkey-year-bandar-malaysia-flipflop

Posted by Fong Kh > Sep 16, 2020 8:13 PM | Report Abuse

Crazy 1.5b for 40% shares.
16/09/2020 8:25 PM
setia2u RM1.70... don't be syiok sendiri lo
16/09/2020 9:01 PM
harudin harudin read laa
17/09/2020 12:21 PM
FutureGains Now the calculation. For IPO, usually 30% is raised from IPO proceeds (estimated at RM5bn) and this means IWH is worth RM15bn.

confuse me...
17/09/2020 5:07 PM
TakeProfits Yar syiok sendiri...betul kah 1.70....LOLOL...kikikik
17/09/2020 7:38 PM
sayalabur Setia2u & take profits am sure u understand simple maths right. The estimated value of the IPO is based on quote by Tan Sri in the news article. Now the estimate value will become reality or not will depend on the actual take up when the IPO is launched. So assuming IWH is valued between RM15-20bn then the 1.70 price target is based on Ekovest’s stake that’s all. So take out your calculators and do the maths
17/09/2020 8:10 PM
sensonic OIL PRICES UP. OIL COUNTERS MAY GORENG TOMORROW
17/09/2020 11:00 PM


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Stock Screener using Technical and Fundamental criteria
MQ Affiliate
Join the MQ Affiliate Program today to earn rewards
 
 

2109 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 SCOMNET 2.060.00 
 KOTRA 3.030.00 
 UCREST 0.130.00 
 GENM-C73 0.0050.00 
 PUC 0.2450.00 
 WILLOW 0.4250.00 
 EAH-WE 0.0150.00 
 IRIS 0.260.00 
 TOPGLOV-C79 0.4350.00 
 BTECH 0.4150.00 

FEATURED POSTS

1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!
PARTNERS & BROKERS